Question
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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