Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $13.20 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.3 lbs. Standard price per Ib. of brass $12.25 Actual price per lb. of brass $12.50 12,051 lbs. Actual lbs. of brass used during the week Number of units produced during the week 9,000 $13.60 Actual wage per hour Actual hours for the week (30 employees x 35 hours) 1,050 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 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 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. Direct Labor Rate Variance Standard wage per hour $13.20 Standard labor time per unit Standard number of lbs. of brass 20 min. 1.3 lbs. $12.25 Standard price per lb. of brass $12.50 Actual price per Ib. of brass Actual lbs. of brass used during the week 12,051 lbs. Number of units produced during the week 9,000 $13.60 Actual wage per hour Actual hours for the week (30 employees x 35 hours) 1,050 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 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 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. Direct Labor Rate Variance A Direct Labor Time Variance A Total Direct Labor Cost Variance A
