a. | Standard labor time per unit in hours = 20 / 60 = 1 / 3 hours | |||
Direct materials standard cost per unit ( Standard number of lbs. of brass * Standard price per lb. of brass = 2 * 11.75 ) | 23.50 | |||
Direct labor standard cost per unit ( Standard labor time per unit in hours * Standard wage per hour = (1/3) * 14.40 ) | 4.80 | |||
Total standard cost per unit | 28.30 | |||
b. | Direct materials price variance = ( Actual price - Standard price ) * Actual quantity = ( 12.00 -11.75 ) * 18540 | 4635 | Unfavorable | |
Standard quantity of direct materials for actual production = Number of units produced during the week * Standard number of lbs. of brass = 9000 * 2 | 18000 | |||
Direct materials quantity variance = ( Actual quantity - Standard quantity ) * Standard price = ( 18540 - 18000 ) * 11.75 | 6345 | Unfavorable | ||
Total direct materials cost variance = ( Actual quantity * Actual price ) - ( Standard quantity * Standard price ) = ( 18540 * 12.00 ) - ( 18000 * 11.75 ) | 10980 | Unfavorable | ||
c. | Direct labor rate variance = ( Actual rate - Standard rate ) * Actual hours = ( 14.83 - 14.40 ) * 1280 | 550 | Unfavorable | |
Standard hours for actual production = Number of units produced during the week * Standard labor hours per unit = 9000 * (1/3) | 3000 | |||
Direct labor time variance = ( Actual hours - Standard hours ) * Standard rate = ( 1280 - 3000 ) * 14.40 | -24768 | Favorable | ||
Total direct labor cost variance = ( Actual hours * Actual rate ) - ( Standard hours * Standard rate ) = ( 1280 * 14.83 ) - ( 3000 * 14.40 ) | -24218 | Favorable |
Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing...
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 70 employees. Each employee presently provides 38
hours of labor per week. Information about a production week is as
follows:
Standard wage per hr.
$20.00
Standard labor time per faucet
30 min.
Standard number of lbs. of brass
2.5 lbs.
Standard price per lb. of brass
$1.80
Actual price per lb. of brass
$1.95
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 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 $12.60 Standard labor time per unit 20 min. Standard number of lbs. of brass 2.1 lbs. Standard price per lb. of brass $10.75 Actual price per lb. of brass $11.00 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 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...
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 70 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: $12.60 Standard wage per hour Standard labor time per unit 20 min. Standard number of lbs. of brass 1.5 lbs. Standard price per Ib. of brass $12.75 Actual price per lb. of brass $13.00 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 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 Abbeville Company manufactures faucets in a small manufacturing facility. The faucets 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 hr $13.80 Standard labor time per faucet 15 min. Standard number of lb. of brass 1.80 lb. Standard price per lb. of brass $9.25 Actual price per lb. of brass $9.50 15,600 lb...
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...