Direct Materials and Direct Labor Variance Analysis

Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 60 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$13.20
Standard labor time per faucet	15 min.
Standard number of lbs. of zinc	1.3 lbs.
Standard price per lb. of zinc	$11.50
Actual price per lb. of zinc	$11.75
Actual lbs. of zinc used during the week	11,600 lbs.
Number of faucets produced during the week	8,700
Actual wage per hour	$13.60
Actual hours per week	2,100 hrs.

Required:

a. Determine the standard cost per faucet for direct materials and direct labor. Do not round intermediate calculations and round your answers to the nearest cent.

Direct materials standard cost per faucet		$fill in the blank 1
Direct labor standard cost per faucet		fill in the blank 2
Total cost per faucet		$fill in the blank 3

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.

Price variance		$fill in the blank 4	Unfavorable
Quantity variance		fill in the blank 6	Unfavorable
Total direct materials cost variance		$fill in the blank 8	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 amount, and an unfavorable variance as a positive amount.

Rate variance		$fill in the blank 10	Unfavorable
Time variance		fill in the blank 12	Favorable
Total direct labor cost variance		$fill in the blank 14	Favorable