Variance Analysis

Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production wee is as follows:

Standard wage per hr $18.00

Standard labor time per faucet 12min

Standard number of lbs. of zinc 0.80 lb.

Standard price per lb. of zinc $1.25

Actual price per lb. of zinc $1.40

Actual lbs. of zinc used during the week 10,200 lbs.

Number of faucets produced during the week 12,000

Actual wage per hr. $18.75

Actual hrs. per week 2,160 hrs

Determine the standard cost per unit for direct materials and direct labor. Determine the price variance, quantity variance, and total direct materials cost variance Determine the rate variance, time variance, and total direct labor cost variance