Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are madefrom brass. Manufacturing has 70 employees. Each employee presently provides 36 hours of labor perweek. Information about a production week is as follows:SHOW WORK!Standard wage per hr. $15.00Standard labor time per faucet 35 min.Standard number of Ibs. of brass per faucetStandard price per lb. of brass $2.40Actual price per lb. of brass2.5 lbs.$2.30Actual Ibs. of brass used during the weekNumber of faucets produced during the week 4,780Actual wage per hr. $15.5011,800 Ibs.Actual hours for the week (70 employees x 36 hours) 2,520A. 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 (CircleD. What is the Direct Materials Quantity Variance?one)Favorable or unfavorable (CircleE. What is the Direct Labor Rate Variance?Favorable or unfavorable (Circleone)F. What is the direct Labor Time Variance?one)Favorable or unfavorable (Circle

Solution: Introduction: Under the standard Costing method, standard cost is a predetermined cost and…

Answered: Abbeville Fixture Company manufactures…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1COMP

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Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $15.00 Standard labor time per faucet 40 min. Standard number of Ib. of brass 3 lb. Standard price per Ib. of brass $2.40 Actual price per Ib. of brass $2.50 Actual Ib. of brass used during the week 14,350 Ib. Number of faucets produced during the week 4,800 Actual wage per hr. $14.40 Actual hrs. for the week 3,240 hrs. 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 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. Round your answers to two decimal…
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