Question 5 (10 MARKS)

Best Bathware Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Information about a production week is as follows:

Standard Costs

Standard direct wage per hour $14.6

Standard labour per unit 15 min

Standard number of gram of zinc 1.6 gram

Standard price per gram of zinc $11.50

Actual Costs Actual price per gram of zinc $11.75

Actual gram of zinc used during the week 12,400 gram

Actual production unit of faucet during the week 7,500 units

Actual direct wages per hour $15

Actual hour per week 1,800 hrs Required:

a) Standard cost per unit for direct materials and direct labours [ 2 MARKS]

b) Direct material price variance [ 2 MARKS]

c) Direct material usage variance [ 2 MARKS]

d) Direct labour wage variance [ 2 MARKS]

e) Direct labour efficiency variance [ 2 MARKS]