Abbeville 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: $16.80 Standard wage per hr. Standard labor time per faucet Standard number of lb. of brass Standard price per lb. of brass Actual price per lb. of brass Actual lb. of brass used during the week Number of faucets produced during the week Actual wage per hr. Actual hrs, for the week Required: 20 min. 1.50 lb. Direct materials price variance Direct materials quantity variance Total direct materials cost variance $9.75 $10.00 12,500 lb. 8,100 $17.30 2,520 hrs. 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 70 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: $16.80 Standard wage per hr. Standard labor time per faucet Standard number of lb. of brass Standard price per lb. of brass Actual price per lb. of brass Actual lb. of brass used during the week Number of faucets produced during the week Actual wage per hr. Actual hrs, for the week Required: 20 min. 1.50 lb. Direct materials price variance Direct materials quantity variance Total direct materials cost variance $9.75 $10.00 12,500 lb. 8,100 $17.30 2,520 hrs. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Direct Materials and Direct Labor Variance Analysis
Abbeville 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:
Standard wage per hr.
$16.80
20 min.
Standard labor time per faucet
Standard number of lb. of brass
1.50 lb.
Standard price per lb. of brass
Actual price per lb. of brass
Actual lb. of brass used during the week
Number of faucets produced during the week
Actual wage per hr.
Actual hrs, for the week
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.
Direct materials price variance
Direct materials quantity variance
Total direct materials cost variance
$9.75
$10.00
12,500 lb.
8,100
$17.30
2,520 hrs.
5
(c)
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