Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 32 hours of labor per week. Information about a production week is as follows:

Standard wage per hour $17.40
Standard labor time per unit 10 min.
Standard number of lbs. of brass 1.6 lbs.
Standard price per lb. of brass $11.00
Actual price per lb. of brass $11.25
Actual lbs. of brass used during the week 11,371 lbs.
Number of units produced during the week 6,900
Actual wage per hour $17.92
Actual hours for the week (30 employees 32 hours) 960

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 $ (Favorable/Unfavorable)
Direct Materials Quantity Variance $ (Favorable/Unfavorable)
Total Direct Materials Cost Variance $ (Favorable/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 $ (Favorable/Unfavorable)
Direct Labor Time Variance $ (Favorable/Unfavorable)
Total Direct Labor Cost Variance $ (Favorable/Unfavorable)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 18 - Significant Accounting Policies And Changes In Them

Authors: Kate Mooney

3rd Edition

0071719407, 9780071719407

More Books

Students also viewed these Accounting questions