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 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	15 min.
Standard number of lbs. of brass	1.3 lbs.
Standard price per lb. of brass	$9.50
Actual price per lb. of brass	$9.75
Actual lbs. of brass used during the week	8,034 lbs.
Number of units produced during the week	6,000
Actual wage per hour	$17.92
Actual hours for the week (30 employees 40 hours)	1,200

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 or unfavorable
Direct Materials Quantity Variance	$_____________	favorable or unfavorable
Total Direct Materials Cost Variance	$_____________	favorable or 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 or unfavorable
Direct Labor Time Variance	$_____________	favorable or unfavorable
Total Direct Labor Cost Variance	$_____________	favorable or unfavorable