Nonfinancial Performance Measures

Alpha University wishes to monitor the efficiency and quality of its course registration process.

a. For each performance measure, identify it as either an input or output measure related to the efficiency and quality of its course registration process.

Performance Measure	Input/Output
Registration staffing per student.
Technology investment per period for registration process.
Cycle time for a student to register for classes.
Number of times a course is unavailable.
Training hours per registration personnel.
Amount of faculty staffing.
Number of separate registration events or steps (log-ons or line waits) per student.
Number of times a replacement course was used by a student.
Amount of technology capacity (size of computer, number of input lines) for registration process.
Maintenance dollars spent on the registration system.
Number of registration errors.
Student satisfaction score with the registration process.

b. Does Alpha University use nonfinancial measures for monitoring this process? Yes

Direct Materials and Direct Labor Variance Analysis

Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$17.4
Standard labor time per unit	20 min.
Standard number of lbs. of brass	1.6 lbs.
Standard price per lb. of brass	$12
Actual price per lb. of brass	$12.25
Actual lbs. of brass used during the week	13,843 lbs.
Number of units produced during the week	8,400
Actual wage per hour	$17.92
Actual hours for the week (50 employees 36 hours)	1,800 hrs.

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	$	Unfavorable
Direct Materials Quantity Variance	$	Unfavorable
Total Direct Materials Cost Variance	$	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	$	Unfavorable
Direct Labor Time Variance	$	Favorable
Total Direct Labor Cost Variance	$	Favorable