Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $13.80 Standard labor time per faucet 15 min. Standard number of lb. of brass 1.80 lb. Standard price per lb. of brass $10.00 Actual price per lb. of brass $10.25 Actual lb. of brass used during the week 12,800 lb. Number of faucets produced during the week 6,900 Actual wage per hr. $14.20 Actual hrs. per week 1,800 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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Chapter10: Standard Costing And Variance Analysis
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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 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hr. $13.80
Standard labor time per faucet 15 min.
Standard number of lb. of brass 1.80 lb.
Standard price per lb. of brass $10.00
Actual price per lb. of brass $10.25
Actual lb. of brass used during the week 12,800 lb.
Number of faucets produced during the week 6,900
Actual wage per hr. $14.20
Actual hrs. per week 1,800 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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