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 lbs. of brass used during the week | 14,276 lbs. |
Number of units produced during the week | 6,600 |
Actual wage per hour | $16.69 |
Actual hours for the week (40 employees × 36 hours) | 1,440 |
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 | $ | Unfavorable |
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 | 5.40 | =16.2*20/60 | |
Total standard cost per unit | 30.60 | ||
b | |||
Direct Materials Price Variance | 3569 | Unfavorable | =14276*(12.25-12) |
Direct Materials Quantity Variance | 4992 | Unfavorable | =12*(14276-6600*2.1) |
Total Direct Materials Cost Variance | 8561 | Unfavorable | =(14276*12.25)-(6600*2.1*12) |
c | |||
Direct Labor Rate Variance | 706 | Unfavorable | =1440*(16.69-16.2) |
Direct Labor Time Variance | -12312 | Favorable | =16.2*(1440-6600*20/60) |
Total Direct Labor Cost Variance | -11606 | Favorable | =(1440*16.69)-(6600*16.2*20/60) |
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 $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 40 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit 20 min. 2 lbs. Standard number of lbs. of brass $11.75 Standard price per lb. of brass 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 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 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...
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....