Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hr $14.40 Standard tabor time per faucet 20 min Standard number of Ib. of brass 1.80 lb. Standard price per lb. of brass $12.00 Actual price per lb. of brass $12.25 Actual lb. of brass used during the week 16,700 lb. Number of faucets produced during the week 9,000 Actual wage per hr $14.80 Actual hrs. for the week 960 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 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. 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 Direct materials quantity variance Total direct materials cost variance 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. 20 min. 1.80 lb. $12.00 Standard labor time per faucet Standard number of lb. of brass Standard price per Ib. of brass Actual price per Ib. of brass $12.25 Actual lb. of brass used during the week 16,700 lb Number of faucets produced during the week 9,000 Actual wage per hr $14.80 Actual hrs. for the week 960 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 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. 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 Direct materials quantity variance Total direct materials cost variance 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 Direct labor time variance Total direct labor cost variance 3
