Direct Materials and Direct Labor Variance Analysis
Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:
Standard wage per hour |
$16.2 |
Standard labor time per unit |
10 min. |
Standard number of lbs. of brass |
2.1 lbs. |
Standard price per lb. of brass |
$12 |
Actual price per lb. of brass |
$12.25 |
Actual lbs. of brass used during the week |
18,169 lbs. |
Number of units produced during the week |
8,400 |
Actual wage per hour |
$16.69 |
Actual hours for the week (30 employees × 35 hours) |
1,050 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 | 25.20 | =2.1*12 | |
Direct labor standard cost per unit | 2.70 | =16.2*(10/60) | |
Total standard cost per unit | 27.90 | ||
b | |||
Direct Materials Price Variance | 4542 | Unfavorable | =18169*(12.25-12) |
Direct Materials Quantity Variance | 6348 | Unfavorable | =12*(18169-8400*2.1) |
Total Direct Materials Cost Variance | 10890 | Unfavorable | =(18169*12.25)-(8400*2.1*12) |
c | |||
Direct Labor Rate Variance | 515 | Unfavorable | =1050*(16.69-16.2) |
Direct Labor Time Variance | -5670 | Favorable | =16.2*(1050-8400*10/60) |
Total Direct Labor Cost Variance | -5156 or -5155 | Favorable | =(1050*16.69)-(8400*16.2*10/60) |
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: $16.2 Standard wage per hour Standard labor time per unit Standard number of lbs. of brass 10 min. 2.1 lbs. $12 Standard price per lb. of brass Actual price per lb. of brass Actual lbs....
Direct Materials and Direct Labor Variance Analysis 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 $15 Standard labor time per unit 15 min 4 1.6 lbs Standard number of Ibs. of brass $12.25 Standard price per lb. of brass Actual price per lb. of brass 512.5...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $15.6 Standard labor time per unit 20 min. Standard number of lbs. of brass 2 lbs. Standard price per lb. of brass $10 Actual price per lb. of brass $10.25 Actual...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 30 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour $13.8 Standard labor time per unit 15 min. Standard number of lbs. of brass 1.2 lbs. Standard price per lb. of brass $10 Actual price per lb. of brass $10.25 Actual...
LPINE Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $15.00 Standard labor time per faucet 40 min. Standard number of lbs. of brass 3 lbs. Standard price per lb. of brass $2.40 Actual price per lb. of brass $2.50...
Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $13.20 Standard labor time per faucet 10 min. Standard number of lbs. of brass 1.2 lbs. Standard price per lb. of brass $11.75 Actual price per lb. of brass $12.00 Actual...
Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $16.20 Standard labor time per unit 20 min. Standard number of lbs. of brass 2.1 lbs. Standard price per lb. of brass $12.00 Actual price per lb. of brass $12.25 Actual...
Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $10.80 Standard labor time per faucet 10 min. Standard number of lb. of brass 1.60 lb. Standard price per lb. of brass $9.25 Actual price per lb. of brass $9.50 Actual lb....
Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $13.20 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.3 lbs. Standard price per Ib. of brass $12.25 Actual price per lb. of brass $12.50 12,051...
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...