Question
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
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 | $ |
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