Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hour | $17.4 |
Standard labor time per unit | 20 min. |
Standard number of lbs. of brass | 1.9 lbs. |
Standard price per lb. of brass | $9.25 |
Actual price per lb. of brass | $9.5 |
Actual lbs. of brass used during the week | 17,613 lbs. |
Number of units produced during the week | 9,000 |
Actual wage per hour | $17.92 |
Actual hours for the week (60 employees × 36 hours) | 2,160 hrs. |
Required:
a. Determine the standard cost per unit 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. Round your answers to the nearest whole dollar. 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. Round your answers to the nearest whole dollar. 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 | $ |
a | |||
Direct materials standard cost per unit | 17.58 | =1.9*9.25 | |
Direct labor standard cost per unit | 5.80 | =17.4*20/60 | |
Total standard cost per unit | 23.38 | ||
b | |||
Direct Materials Price Variance | 4403 | Unfavorable | =17613*(9.5-9.25) |
Direct Materials Quantity Variance | 4745 | Unfavorable | =9.25*(17613-9000*1.9) |
Total Direct Materials Cost Variance | 9149 or 9148 | Unfavorable | =(17613*9.5)-(9000*1.9*9.25) |
c | |||
Direct Labor Rate Variance | 1123 | Unfavorable | =2160*(17.92-17.4) |
Direct Labor Time Variance | -14616 | Favorable | =17.4*(2160-9000*20/60) |
Total Direct Labor Cost Variance | -13493 | Favorable | =(2160*17.92)-(9000*17.4*20/60) |
Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass....
Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Standard wage per hour $10.8 Standard labor time per unit 10 min. Standard number of lbs. of brass 1.8 lbs. Standard price per lb. of brass $12.75 Actual price per lb. of brass $13 Actual lbs. of brass used during the week...
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