Direct Materials and Direct Labor Variance Analysis

Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hour $14.4 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.3 lbs. Standard price per lb. of brass $10.75 Actual price per lb. of brass $11 Actual lbs. of brass used during the week 12,051 lbs. Number of units produced during the week 9,000 Actual wage per hour $14.83 Actual hours for the week (40 employees 36 hours) 1,440 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 $____ 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. Round your answers to the nearest whole 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. Round your answers to the nearest whole 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 $____