Question

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 Actual lb. of brass used during the week 8,400 Number of faucets produced during the week Actual wage per hr $14.20 Actual hrs. per week 2,160 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. Detemine the direct materials price varlance, direct materials quantity variance, and total direct materials cost varlance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Answer 1

+Abbeville company albiacct matraial stondasd cos Per unit 16.65 DIectlaboY Standard cost pes onit 3.45 TO1O STOndard coSt Pes unit 20.10 2EXPlanato 1 80 X 9-25 16.65 15min/cominx F13-80 F 3.45 Diaect ma lerial paice vanance 3900 U DraeCt matenal quortity variance 4440 8340 U TO1OY DIect raatenal cost vaman ce EXPlanation DPn ce va AQSP-AP 15600 C 9- 25- F9 50 F 3900 U Ayantity variane SP CAa-So) 9.25 IS600- IS120) F 4440 0 1SIZ0 8400 0nit X 18016)-

c Direct 1abor 90le varian Ce 864 828 labor time vanane D ৫C। E 1692 U TOTC DIect 1abor cOSt vanan Ce EXPlanation AH CSR- AR 2160 (B13 80-F1420 Cnfavooable Rate variana 864 SP CAH-SH Time Vanance - $13.80 ( 2160 2100 rSH- ts/60 O.25 HOU X8400 2100 7