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.	$15.00
Standard labor time per faucet	15 min.
Standard number of lb. of brass	1.20 lb.
Standard price per lb. of brass	$10.75
Actual price per lb. of brass	$11.00
Actual lb. of brass used during the week	9,300 lb.
Number of faucets produced during the week	7,500
Actual wage per hr.	$15.50
Actual hrs. per week	1,600 hrs.

Required:

a. Determine the standard cost per faucet for direct materials and direct labor. Round the cost per unit to two decimal places.

Direct materials standard cost per unit	$
Direct labor standard cost per unit
Total standard cost per unit	$

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials price variance	$	Unfavorable
Direct materials quantity variance		Unfavorable
Total direct materials cost variance	$	Unfavorable

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	$	Unfavorable
Direct labor time variance		Favorable
Total direct labor cost variance	$	Favorable