Question
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
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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 36 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 1.8 lbs. Standard price per lb. of brass $10.50 Actual price per lb. of brass $10.75 Actual lbs. of brass used during the week 13,905 lbs. Number of units produced during the week 7,500 Actual wage per hour $11.74 Actual hours for the week (40 employees 36 hours) 1,440
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 $fill in the blank 1 Direct labor standard cost per unit $fill in the blank 2 Total standard cost per unit $fill in the blank 3
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 $fill in the blank 4 FavorableUnfavorable
Direct Materials Quantity Variance $fill in the blank 6 FavorableUnfavorable
Total Direct Materials Cost Variance $fill in the blank 8 FavorableUnfavorable
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 $fill in the blank 10 FavorableUnfavorable
Direct Labor Time Variance $fill in the blank 12 FavorableUnfavorable
Total Direct Labor Cost Variance $fill in the blank 14 FavorableUnfavorable
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 36 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 | 1.8 lbs. |
| Standard price per lb. of brass | $10.50 |
| Actual price per lb. of brass | $10.75 |
| Actual lbs. of brass used during the week | 13,905 lbs. |
| Number of units produced during the week | 7,500 |
| Actual wage per hour | $11.74 |
| Actual hours for the week (40 employees 36 hours) | 1,440 |
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 | $fill in the blank 1 |
| Direct labor standard cost per unit | $fill in the blank 2 |
| Total standard cost per unit | $fill in the blank 3 |
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 | $fill in the blank 4 | FavorableUnfavorable |
| Direct Materials Quantity Variance | $fill in the blank 6 | FavorableUnfavorable |
| Total Direct Materials Cost Variance | $fill in the blank 8 | FavorableUnfavorable |
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 | $fill in the blank 10 | FavorableUnfavorable |
| Direct Labor Time Variance | $fill in the blank 12 | FavorableUnfavorable |
| Total Direct Labor Cost Variance | $fill in the blank 14 | FavorableUnfavorable |
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
978-1259536359
