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

   Standard wage per hour	$12.00
   Standard labor time per unit	15 min.
   Standard number of lbs. of brass	1.7 lbs.
   Standard price per lb. of brass	$9.25
   Actual price per lb. of brass	$9.50
   Actual lbs. of brass used during the week	15,234 lbs.
   Number of units produced during the week	8,700
   Actual wage per hour	$12.36
   Actual hours for the week (60 employees 32 hours)	1,920

   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