Direct Materials and Direct Labor Variance Analysis

Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

Standard wage per hr.$15.60Standard labor time per faucet15 min.Standard number of lb. of brass1.90 lb.Standard price per lb. of brass$9.75Actual price per lb. of brass$10.00Actual lb. of brass used during the week12,300 lb.Number of faucets produced during the week6,300Actual wage per hr.$16.10Actual hrs. for the week1,280 hrs.

Required:

a. Determine the standard cost per unit for direct materials and direct labor. Do not round your intermediate calculations and round the cost per unit to two decimal places.

Direct materials standard cost per unit$fill in the blank 1Direct labor standard cost per unitfill in the blank 2Total standard cost per unit$fill in the blank 3

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Do not round your intermediate calculations and round your final answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials price variance$fill in the blank 4FavorableUnfavorableDirect materials quantity variancefill in the blank 6FavorableUnfavorableTotal direct materials cost variance$fill in the blank 8FavorableUnfavorable

c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Do not round your intermediate calculations and round your final answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct labor rate variance$fill in the blank 10FavorableUnfavorableDirect labor time variancefill in the blank 12FavorableUnfavorableTotal direct labor cost variance$fill in the blank 14FavorableUnfavorable