Direct Materials Variances

I-Time, Inc., produces electronic timepieces. The company uses mini-LCD displays for its products. Each timepiece uses one display. The company produced 480 timepieces during October. However, due to LCD defects, the company actually used 500 LCD displays during October. Each display has a standard cost of $6.30. The company purchased 500 LCD displays for Octoberproduction at a cost of $2,875.

Determine the price variance, quantity variance, and total direct materials cost variance for October. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to nearest cent, if required.

Price variance	$
Quantity variance	$
Total direct materials cost variance	$

Standard Direct Materials Cost per Unit from Variance Data

The following data relating to direct materials cost for November of the current year are taken from the records of Play Tyme Inc., a manufacturer of plastic toys:

Quantity of direct materials used	4,300 lbs.
Actual unit price of direct materials	$3.10 per lb.
Units of finished product manufactured	2,060 units
Standard direct materials per unit of finished product	2 lbs.
Direct materials quantity varianceunfavorable	$594
Direct materials price variancefavorable	$860

Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.

Product finished		units
Standard finished product for direct materials used		units
Deficiency of finished product for materials used		units
Standard cost for direct materials	$	per unit Direct Labor Variances Alpine Bicycle Company manufactures road bikes. The following data for September of the current year are available: Quantity of direct labor used 410 hrs. Actual rate for direct labor $13.90 per hr. Bicycles completed in September 190 Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $14.20 per hr. a. Determine the direct labor rate variance and direct labor time variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance $ SelectFavorableUnfavorableItem 2 Time variance $ SelectFavorableUnfavorableItem 4 Total direct labor cost variance $ SelectFavorableUnfavorableItem 6 b. How much direct labor should be debited to Work in Process? $

Direct Materials and Direct Labor Variance Analysis

Best Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 70 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$16.20
Standard labor time per faucet	10 min.
Standard number of lbs. of zinc	1.4 lbs.
Standard price per lb. of zinc	$11.25
Actual price per lb. of zinc	$11.50
Actual lbs. of zinc used during the week	9,100 lbs.
Number of faucets produced during the week	6,300
Actual wage per hour	$16.70
Actual hours per week	2,800 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 faucet	$
Direct labor standard cost per faucet	$
Total standard cost per faucet	$

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.

Price variance	$	SelectFavorableUnfavorableItem 5
Quantity variance	$	SelectFavorableUnfavorableItem 7
Total direct materials cost variance	$	SelectFavorableUnfavorableItem 9

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.

Rate variance	$	SelectFavorableUnfavorableItem 11
Time variance	$	SelectFavorableUnfavorableItem 13
Total direct labor cost variance	$	SelectFavorableUnfavorableItem 15