Direct Materials and Direct Labor Variance Analysis Jericho Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard number of lbs. of brass 1.2 lbs. Standard price per lb. of brass $12.50 Standard wage per hour $12.00 Standard labor time per unit 15 min. Actual price per lb. of brass $12.75 Actual lbs. of brass used during the week 8,158 lbs. Number of units produced during the week 6,500 Actual wage per hour $12.36 Actual hours for the week (40 employees x 36 hours) 1,440 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 a unfavorable variance as a positive number. Direct Materials Price Variance $ \"Hf-Havroi'l'ab'e T; \\f Direct Materials Quantity Variance $ W V' Total Direct Materials Cost Variance $ W J c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answer.I 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 . $ 9% V, Direct Labor Time Variance $ :FVdfaiu *5 v, Total Direct Labor Cost Variance $ W J Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Flexible Budgeting and Variance Analysis Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 10 lbs. 7 lbs. $5.20 Sugar Bibs. 12 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 5,200 cases 11,900 cases Standard labor rate $14.00 per hr. $14.00 per hr. Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual resuits: Dark Chocolate Light Chocolate Actual production (cases) 4,900 12,400 Actual Price per Pound Actual Quantity Purchased and Used Cocoa $5.30 136,500 Sugar 0.55 183,300 Actual Labor Rate Actual Labor Hours Used Dark chocolate $13.70 per hr. 1,780 Light chocolate 14.30 per hr. 6,350 Required: 1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year: a. Direct materials price variance, direct materials quantity variance, and total variance. b. Direct labor rate variance, direct labor time variance, and total 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 $ =W? '1 a, Direct materials quantity variance $ mm Total direct materials cost variance $ males J b. Direct labor rate variance $ Uf'aatai M\" J Direct labor time variance $ am J -._t_. 4.1-11 ._.__._ "4,141,," at ii'nrsoaasma" v: .I 2. The variance analyses should be based on the standard _ v amounts at actual _ v volumes. The budget must fle with the volume changes. If the actual _ v volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the actual * v production. In this way, spending from volume changes can be separated from efficiency and price variances. Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Review how actual production is analyzed by using standard amounts.Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs 183,200 lbs. at $5.80 per Direct materials 185,000 lbs. at $6.00 per lb. Ib 18,930 hrs. at $18.80 per Direct labor 18,500 hrs. at $18.40 per hr. hr. Factory Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor overhead hrs. : Variable cost, $4.10 $75,090 variable cost Fixed cost, $6.50 $125,515 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Ente a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Favorable Direct Materials Quantity Variance $ Favorable Total Direct Materials Cost Variance $ Favorable b. 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 $ Unfavorable Direct Labor Time Variance $ Unfavorable Total Direct Labor Cost Variance $ Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance $ Favorable V Fixed factory overhead volume variance $ Unfavorable Total factory overhead cost variance $ Unfavorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced