Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $14.40 Standard labor time per faucet 10 min. Standard number of lb. of brass 1.50 lb. Standard price per lb. of brass $12.50 Actual price per lb. of brass $12.75 Actual lb. of brass used during the week 10,700 lb. Number of faucets produced during the week 6,900 Actual wage per hr. $14.80 Actual hrs. per week 1,050 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 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct labor rate variance $   Direct labor time variance     Total direct labor cost variance $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Direct Materials and Direct Labor Variance Analysis

Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:

Standard wage per hr. $14.40
Standard labor time per faucet 10 min.
Standard number of lb. of brass 1.50 lb.
Standard price per lb. of brass $12.50
Actual price per lb. of brass $12.75
Actual lb. of brass used during the week 10,700 lb.
Number of faucets produced during the week 6,900
Actual wage per hr. $14.80
Actual hrs. per week 1,050 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 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct labor rate variance $  
Direct labor time variance    
Total direct labor cost variance $  
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