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Direct Materials Variances
Silicone Engine Inc. produces wrist-worn tablet computers. Thecompany uses Thin Film Crystal (TFC) LCD displays for its products.Each tablet uses one display. The company produced 450 tabletsduring December. However, due to LCD defects, the company actuallyused 500 LCD displays during December. Each display has a standardcost of $6.00. LCD displays were purchased for December productionat a cost of $3,150.
Determine the price variance, quantity variance, and totaldirect materials cost variance for December. Enter a favorablevariance as a negative number using a minus sign and an unfavorablevariance as a positive number. And, enter your final varianceamounts to the nearest whole dollar.
| Price variance | $ | |
| Quantity variance | $ | |
| Total direct materials cost variance | $ |
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Direct Materials and Direct Labor Variance Analysis
Abbeville Company manufactures faucets in a small manufacturingfacility. The faucets are made from brass. Manufacturing has 70employees. Each employee presently provides 36 hours of labor perweek. Information about a production week is as follows:
| Standard wage per hr. | $16.20 |
| Standard labor time per faucet | 20 min. |
| Standard number of lb. of brass | 1.40 lb. |
| Standard price per lb. of brass | $10.25 |
| Actual price per lb. of brass | $10.50 |
| Actual lb. of brass used during the week | 8,700 lb. |
| Number of faucets produced during the week | 6,000 |
| Actual wage per hr. | $16.70 |
| Actual hrs. per week | 2,520 hrs. |
Required:
a. Determine the standard cost per faucet fordirect materials and direct labor. Round the cost per unit to twodecimal places.
| Direct materials standard cost per unit | $ |
| Direct labor standard cost per unit | |
| Total standard cost per unit | $ |
b. Determine the direct materials pricevariance, direct materials quantity variance, and total directmaterials cost variance. Enter a favorable variance as a negativenumber using a minus sign and an unfavorable variance as a positivenumber.
| 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.Enter a favorable variance as a negative number using a minus signand an unfavorable variance as a positive number.
| Direct labor rate variance | $ | |
| Direct labor time variance | | |
| Total direct labor cost variance | $ | |
