Direct Materials and Direct Labor Variance Analysis

Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

Standard wage per hr.	$16.20
Standard labor time per faucet	10 min.
Standard number of lb. of brass	1.50 lb.
Standard price per lb. of brass	$12.25
Actual price per lb. of brass	$12.50
Actual lb. of brass used during the week	10,700 lb.
Number of faucets produced during the week	6,900
Actual wage per hr.	$16.70
Actual hrs. for the week	1,600 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 1
Direct labor standard cost per unit	fill in the blank 2
Total 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 4	FavorableUnfavorable
Direct materials quantity variance	fill in the blank 6	FavorableUnfavorable
Total direct materials cost variance	$fill in the blank 8	FavorableUnfavorable

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 10	FavorableUnfavorable
Direct labor time variance	fill in the blank 12	FavorableUnfavorable
Total direct labor cost variance	$fill in the blank 14	FavorableUnfavorable