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 $12.00 Standard labor time per faucet 20 min. Standard number of lbs. of brass 1.8 lbs. Standard price per lb. of brass $12.75 Actual price per lb. of brass $13.00 Actual lbs. of brass used during the week 16,130 lbs. Number of faucets produced during the week 8,700 Actual wage per hour $12.36 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 $ 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 $ Unfavorable Direct Materials Quantity Variance $ Unfavorable Total Direct Materials Cost Variance $ Unfavorable

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 $