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 50 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:

Standard wage per hour$12.00Standard labor time per unit20 min.Standard number of lbs. of brass2 lbs.Standard price per lb. of brass$10.50Actual price per lb. of brass$10.75Actual lbs. of brass used during the week16,686 lbs.Number of units produced during the week8,100Actual wage per hour$12.36Actual hours for the week (50 employees 35 hours)1,750

Required:

a.Determine thestandard costper 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 materialsprice variance, direct materialsquantity variance, and total direct materialscost 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 laborrate variance, direct labortime 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