1. 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 40 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:

   Standard wage per hour	$17.40
   Standard labor time per unit	20 min.
   Standard number of lbs. of brass	1.2 lbs.
   Standard price per lb. of brass	$10.25
   Actual price per lb. of brass	$10.50
   Actual lbs. of brass used during the week	9,641 lbs.
   Number of units produced during the week	7,800
   Actual wage per hour	$17.92
   Actual hours for the week (40 employees 40 hours)	1,600

   Required:

   a. Determine the A detailed estimate of what a product should cost.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 is the difference between the actual and standard prices, multiplied by the actual quantity.price variance, direct materials The cost associated with the difference between the standard quantity and the actual quantity of direct materials used in producing a commodity.quantity variance, and total direct materials The difference between actual cost and standard cost at actual volumes.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	$	Favorable Unfavorable
   Direct Materials Quantity Variance	$	Favorable Unfavorable
   Total Direct Materials Cost Variance	$	Favorable Unfavorable

   c. Determine the direct labor The cost associated with the difference between the standard rate and the actual rate paid for direct labor used in producing a commodity.rate variance, direct labor The cost associated with the difference between standard and actual hours of direct labor spent for producing a commodity.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	$	Favorable Unfavorable
   Direct Labor Time Variance	$	Favorable Unfavorable
   Total Direct Labor Cost Variance	$	Favorable Unfavorable