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 $32$ hours of labor per week. Information about a production week is as follows:

Line Item Description Value

Standard number of lbs$.$ of brass $1\mathrm{.}9$ lbs$.$

Standard price per lb$.$ of brass $$12\mathrm{.}75$

Standard wage per hour $$17\mathrm{.}40$

Standard labor time per unit $15$ min.

Actual price per lb$.$ of brass $$13\mathrm{.}00$

Actual lbs$.$ of brass used during the week $12,916$ lbs$.$

Number of units produced during the week $6,600$

Actual wage per hour $$17\mathrm{.}92$

Actual hours for the week $(40$ employees $\backslash$times $32$ hours$)1,280$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

Direct Materials Quantity Variance

Total Direct Materials Cost Variance

$

$

$

Unfavorable $-$

Favorable Favorable