Question
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
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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 30 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:
Standard wage per hour $12.6 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.5 lbs. Standard price per lb. of brass $9.25 Actual price per lb. of brass $9.5 Actual lbs. of brass used during the week 13,905 lbs. Number of units produced during the week 9,000 Actual wage per hour $12.98 Actual hours for the week (30 employees 32 hours) 960 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 $
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