Question
Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90
Direct Materials and Direct Labor Variance Analysis
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hr. | $15.00 |
Standard labor time per faucet | 40 min. |
Standard number of lb. of brass | 3 lb. |
Standard price per lb. of brass | $2.40 |
Actual price per lb. of brass | $2.50 |
Actual lb. of brass used during the week | 14,350 lb. |
Number of faucets produced during the week | 4,800 |
Actual wage per hr. | $14.40 |
Actual hrs. for the week | 3,240 hrs. |
Required:
a. Determine the standard cost per unit for direct materials and direct labor. 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. Round your answers to two decimal places, if necessary. 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. 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 |
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