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 70 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$11.40
Standard labor time per unit	20 min.
Standard number of lbs. of brass	1.2 lbs.
Standard price per lb. of brass	$11.50
Actual price per lb. of brass	$11.75
Actual lbs. of brass used during the week	11,124 lbs.
Number of units produced during the week	9,000
Actual wage per hour	$11.74
Actual hours for the week (70 employees 32 hours)	2,240

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	$ 13.80
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	$ ???	Unfavorable
Direct Materials Quantity Variance	$ ???	Unfavorable
Total Direct Materials Cost Variance	$ ???	Unfavorable

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	$ ???	Unfavorable
Direct Labor Time Variance	$ ???	Favorable
Total Direct Labor Cost Variance	$ ???	Favorable