Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $11.40 Standard labor time per faucet 15 min. Standard number of Ib. of brass 2.10 lb. Standard price per Ib. of brass $10.50 Actual price per Ib. of brass $10.75 Actual Ib. of brass used during the week 19,500 lb. Number of faucets produced during the week 9,000 Actual wage per hr. $11.70 Actual hrs. for the week 1,080 hrs. Required: a. Determine the standard cost per unit for direct materials and direct labor. Do not round your intermediate calculations and 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. Do not round your intermediate calculations and round your final answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $11.40 Standard labor time per faucet 15 min. Standard number of Ib. of brass 2.10 lb. Standard price per Ib. of brass $10.50 Actual price per Ib. of brass $10.75 Actual Ib. of brass used during the week 19,500 lb. Number of faucets produced during the week 9,000 Actual wage per hr. $11.70 Actual hrs. for the week 1,080 hrs. Required: a. Determine the standard cost per unit for direct materials and direct labor. Do not round your intermediate calculations and 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. Do not round your intermediate calculations and round your final answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Name: Direct Materials and Direct Labor Variance AnalysisAbbeville Company
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Direct Materials and Direct Labor Variance AnalysisAbbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 36 hours of labor per week

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: SHOW WORK! Standard wage per hr. $15.00 Standard labor time per faucet 35 min. Standard number of Ibs. of brass per faucet Standard price per lb. of brass $2.40 Actual price per lb. of brass 2.5 lbs. $2.30 Actual Ibs. of brass used during the week Number of faucets produced during the week 4,780 Actual wage per hr. $15.50 11,800 Ibs. Actual hours for the week (70 employees x 36 hours) 2,520 A. What is the standard cost per unit for direct materials? B. What is the standard cost per unit for direct labor? C. What is the Direct Materials Price Variance? one) Favorable or unfavorable (Circle D. What is the Direct Materials Quantity Variance? one) Favorable or unfavorable (Circle E. What is the Direct Labor Rate Variance? Favorable or…
Subject: Acounting