Direct Materials and Direct Labor Variance Analysis 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:

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.

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

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\mathrm{.}00$

Standard labor time per unit $20$ min.

Standard number of lbs$.$ of brass $1\mathrm{.}8$ lbs$.$

Standard price per lb$.$ of brass $$10\mathrm{.}00$

Actual price per lb$.$ of brass $$10\mathrm{.}25$

Actual lbs$.$ of brass used during the week $12,793$ lbs$.$

Number of units produced during the week $6,900$

Actual wage per hour $$12\mathrm{.}36$

Actual hours for the week $(40$ employees $\backslash$times $36$ 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 $fill in the blank $1$

Direct labor standard cost per unit $fill in the blank $2$

Total standard cost per unit $fill in the blank $3$

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 $fill in the blank $4$

Direct Materials Quantity Variance $fill in the blank $6$

Total Direct Materials Cost Variance $fill in the blank $8$

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 $fill in the blank $10$

Direct Labor Time Variance $fill in the blank $12$

Total Direct Labor Cost Variance $fill in the blank $14$