In: Accounting
Direct Materials and Direct Labor Variance Analysis
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:
Standard wage per hr. | $16.80 |
Standard labor time per faucet | 10 min. |
Standard number of lb. of brass | 1.30 lb. |
Standard price per lb. of brass | $10.25 |
Actual price per lb. of brass | $10.50 |
Actual lb. of brass used during the week | 10,400 lb. |
Number of faucets produced during the week | 7,800 |
Actual wage per hr. | $17.30 |
Actual hrs. per week | 1,600 hrs. |
Required:
a. Determine the standard cost per faucet 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct materials price variance | $ | |
Direct materials quantity variance | ||
Total direct materials cost variance | $ |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct labor rate variance | $ | |
Direct labor time variance | ||
Total direct labor cost variance | $ |