Question

# 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 30 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

 Standard wage per hour \$17.40 Standard labor time per unit 10 min. Standard number of lbs. of brass 1.6 lbs. Standard price per lb. of brass \$11.00 Actual price per lb. of brass \$11.25 Actual lbs. of brass used during the week 11,371 lbs. Number of units produced during the week 6,900 Actual wage per hour \$17.92 Actual hours for the week (30 employees × 32 hours) 960

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 \$ (Favorable/Unfavorable) Direct Materials Quantity Variance \$ (Favorable/Unfavorable) Total Direct Materials Cost Variance \$ (Favorable/Unfavorable)

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 \$ (Favorable/Unfavorable) Direct Labor Time Variance \$ (Favorable/Unfavorable) Total Direct Labor Cost Variance \$ (Favorable/Unfavorable)

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