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 $30$ employees. Each employee presently provides $32$ hours of labor per week. Information about a production week is as follows:

Line Item Description Value

Standard number of lbs$.$ of brass $1\mathrm{.}7$ lbs$.$

Standard price per lb$.$ of brass $$12\mathrm{.}25$

Standard wage per hour $$15\mathrm{.}60$

Standard labor time per unit $10$ min.

Actual price per lb$.$ of brass $$12\mathrm{.}50$

Actual lbs$.$ of brass used during the week $14,708$ lbs$.$

Number of units produced during the week $8,400$

Actual wage per hour $$16\mathrm{.}07$

Actual hours for the week $(30$ employees $\backslash$times $32$ hours$)960$

Required:

a$.$ Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.

Line Item Description Cost per Unit

Direct materials standard cost per unit $fill in the blank $1$

Direct labor standard cost per unit $fill in the blank $2$

Total standard cost per unit $fill in the blank $3$

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.

Line Item Description Amount Variance

Direct Materials Price Variance $fill in the blank $4$

Direct Materials Quantity Variance $fill in the blank $6$

Total Direct Materials Cost Variance $fill in the blank $8$

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.

Line Item Description Amount Variance

Direct Labor Rate Variance $fill in the blank $10$

Direct Labor Time Variance $fill in the blank $12$

Total Direct Labor Cost Variance $fill in the blank $14$