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 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hr.	$15.00
Standard labor time per faucet	40 min.
Standard number of lbs. of brass	3 lbs.
Standard price per lb. of brass	$2.40
Actual price per lb. of brass	$2.50
Actual lbs. of brass used during the week	14,350 lbs.
Number of faucets produced during the week	4,800
Actual wage per hr.	$14.40
Actual hrs. for the week (90 employees 36 hours)	3,240 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials Price Variance		Favorable/Unfavorable
Direct Materials Quantity Variance		Favorable/Unfavorable
Total Direct Materials Cost Variance		Favorable/Unfavorable

c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Labor Rate Variance		Favorable/Unfavorable
Direct Labor Time Variance		Favorable/Unfavorable
Total Direct Labor Cost Variance		Favorable/Unfavorable