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Direct Materials and Direct Labor Variance Analysis

Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. 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	2.10 lb.
Standard price per lb. of brass	$10.50
Actual price per lb. of brass	$10.75
Actual lb. of brass used during the week	14,300 lb.
Number of faucets produced during the week	6,600
Actual wage per hr.	$16.70
Actual hrs. per week	1,080 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. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. 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 or Unfavorable
Direct materials quantity variance		Favorable or Unfavorable
Total direct materials cost variance		Favorable or Unfavorable

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 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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