Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi I need help with this question please? 3:47 1 v2.cengagenow.com Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a

Hi I need help with this question please?

image text in transcribed
3:47 1 v2.cengagenow.com 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 40 hours of labor per week. Information about a production week is as follows: Standard wage per hour $15.00 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.6 lbs. Standard price per lb. of brass $10.00 Actual price per lb. of brass $10.25 Actual Ibs. of brass used during the week 9,888 lbs. Number of units produced during the week 6,000 Actual wage per hour $15.45 Actual hours for the week (40 employees x 40 hours) 1,600 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 16 V Direct labor standard cost per unit Total standard cost per unit 21 V 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 2,472 Unfavorable v Direct Materials Quantity Variance 6,221 X Unfavorable v Total Direct Materials Cost Variance 91,752 X Unfavorable v 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 540 X Unfavorable v Direct Labor Time Variance -16,500 X Favorable v Total Direct Labor Cost Variance -15,960 X Favorable V Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). + 2

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

Foundations Of Finance

Authors: Arthur Keown, John Martin, J. Petty

10th Edition

0136102654, 9780136102656

More Books

Students also viewed these Accounting questions

Question

How do you think this problem should be treated?

Answered: 1 week ago