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Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 50 employees. Each employee presently provides 36
Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. 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 | $14.50 |
Standard labor time per faucet | 12 min. |
Standard number of lbs. of zinc | 1.8 lbs. |
Standard price per lb. of zinc | $12.00 |
Actual price per lb. of zinc | $11.75 |
Actual lbs. of zinc used during the week | 15,100 lbs |
Number of faucets produced during the week | 8,000 |
Actual wage per hr. | $15.10 |
Actual hrs. per week | 1,800 hrs. |
a. Determine Standard Cost per unit for direct materials and direct labor
b. Determine the price variance, quantity variance, and total direct materials cost variance
c. Determine the rate variance, time variance, and total direct labor cost variance
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