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Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has

Direct Materials and Direct Labor Variance Analysis

Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hour $11.40
Standard labor time per faucet 20 min.
Standard number of lbs. of brass 2 lbs.
Standard price per lb. of brass $9.50
Actual price per lb. of brass $9.75
Actual lbs. of brass used during the week 14,214 lbs.
Number of faucets produced during the week 6,900
Actual wage per hour $11.74
Actual hours for the week (30 employees 36 hours) 1,080 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 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 $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. 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 $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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