Direct Materials and Direct Labor Variance Analysis
Shasta Fixture Company manufactures faucets in a smallmanufacturing facility. The faucets are made from brass.Manufacturing has 50 employees. Each employee presently provides 32hours of labor per week. Information about a production week is asfollows:
| Standard wage per hour | $13.80 |
| Standard labor time per unit | 15 min. |
| Standard number of lbs. of brass | 1.6 lbs. |
| Standard price per lb. of brass | $10.75 |
| Actual price per lb. of brass | $11.00 |
| Actual lbs. of brass used during the week | 11,371 lbs. |
| Number of units produced during the week | 6,900 |
| Actual wage per hour | $14.21 |
| Actual hours for the week (50 employees × 32 hours) | 1,600 |
Required:
a. Determine the standard cost per unit fordirect materials and direct labor. Round the cost per unitto 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 pricevariance, direct materials quantity variance, and total directmaterials cost variance. Round your answers to the nearestwhole dollar. 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.Round your answers to the nearest whole dollar.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 | $ | |
