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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 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$15.60
Standard labor time per unit	20 min.
Standard number of lbs. of brass	1.7 lbs.
Standard price per lb. of brass	$12.75
Actual price per lb. of brass	$13.00
Actual lbs. of brass used during the week	14,708 lbs.
Number of units produced during the week	8,400
Actual wage per hour	$16.07
Actual hours for the week (60 employees 36 hours)	2,160

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	FavorableUnfavorable
Direct Materials Quantity Variance	$fill in the blank	FavorableUnfavorable
Total Direct Materials Cost Variance	$fill in the blank	FavorableUnfavorable

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	FavorableUnfavorable
Direct Labor Time Variance	$fill in the blank	FavorableUnfavorable
Total Direct Labor Cost Variance	$fill in the blank	FavorableUnfavorable

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