Variance Analysis (Points: 30)

B. Easyflow Co Inc manufactures faucets in a small manufacturing facility. The faucets are from zinc. Manufacturing has 60 employees. Each employee presently provides 36 hours of labour per week. Information about a production week is as follows:

Standard wage per hr. $18.00

Standard labour times per faucet 12 min.

Standard number of lb. of zinc 0.80 lbs.

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.

Requirements:

Determine:

1. The standard cost per unit of direct materials and direct labour.
2. The price variance, quality variance, and total direct materials cost variance.
3. The rate variance, time variance and direct labour cost variance.