Answer Happy

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 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour $16.80 Standard labor time per unit 15 min. Standard number of lbs. of brass 1.7 lbs. Standard price per Ib. of brass $12.50 Actual price per Ib. of brass $12.75 Actual lbs. of brass used during the week 15,759 lbs. Number of units produced during the week 9,000 Actual wage per hour $17.30 Actual hours for the week (60 employees x 32 hours) 1,920
nours for the week employees X 32 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 21.25 Direct labor standard cost per unit 4.20 Total standard cost per unit $ 25.45 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 12.50 X Unfavorable Direct Materials Quantity Variance 12.75 X Unfavorable Total Direct Materials Cost Variance 0.25 х Unfavorable 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 16.80 Х Unfavorable Direct Labor Time Variance -17.30 x Favorable Total Direct Labor Cost Variance -0.50 X Favorable