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:

Line Item Description Value

Standard number of yds$.$ of fabric per unit $5\mathrm{.}0$ yds$.$

Standard price per yd$.$ of fabric $$5\mathrm{.}00$

Standard wage per hr$.$ $$12\mathrm{.}00$

Standard labor time per unit $12$ min.

Actual price per yd$.$ of fabric $$5\mathrm{.}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\mathrm{.}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.

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 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.

Line Item Description Amount Variance

Price variance $fill in the blank $4$

Quantity variance $fill in the blank $6$

Total direct materials cost variance $fill in the blank $8$

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.

Line Item Description Amount Variance

Rate variance $fill in the blank $10$

Time variance $fill in the blank $12$

Total direct labor cost variance $fill in the blank $14$