Direct Materials and Direct Labor Variance Analysis

Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows:

Standard wage per hr.	$12.00
Standard labor time per unit	12 min.
Standard number of yds. of fabric per unit	5.0 yds.
Standard price per yd. of fabric	$5.00
Actual price per yd. of fabric	$5.10
Actual yds. of fabric used during the week	26,200 yds.
Number of units produced during the week	5,220
Actual wage per hr.	$11.80
Actual hrs. for the week	1,000 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 price variance, quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Price variance	$
Quantity variance	$
Total direct materials cost variance	$

c. Determine the rate variance, 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.

Rate variance	$
Time variance	$
Total direct labor cost variance	$