Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour $12.00 Standard labor time per unit 15 min. Standard number of lbs. of brass 1.5 lbs. Standard price per lb. of brass $11.00 Actual price per lb. of brass $11.25 Actual lbs. of brass used during the week 11,124 lbs. Number of units produced during the week 7,200 Actual wage per hour $12.36 Actual hours for the week (50 employees × 32 hours) 1,600 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 $fill in the blank 1 Direct labor standard cost per unit $fill in the blank 2 Total standard cost per unit $fill in the blank 3 b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole 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 $fill in the blank 4 Direct Materials Quantity Variance $fill in the blank 6 Total Direct Materials Cost Variance $fill in the blank 8 c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance $fill in the blank 10 Direct Labor Time Variance $fill in the blank 12 Total Direct Labor Cost Variance $fill in the blank 14
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Direct Materials and Direct Labor
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $12.00 |
| Standard labor time per unit | 15 min. |
| Standard number of lbs. of brass | 1.5 lbs. |
| Standard price per lb. of brass | $11.00 |
| Actual price per lb. of brass | $11.25 |
| Actual lbs. of brass used during the week | 11,124 lbs. |
| Number of units produced during the week | 7,200 |
| Actual wage per hour | $12.36 |
| Actual hours for the week (50 employees × 32 hours) | 1,600 |
Required:
a. Determine the
| Direct materials standard cost per unit | $fill in the blank 1 |
| Direct labor standard cost per unit | $fill in the blank 2 |
| Total standard cost per unit | $fill in the blank 3 |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole 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 | $fill in the blank 4 | |
| Direct Materials Quantity Variance | $fill in the blank 6 | |
| Total Direct Materials Cost Variance | $fill in the blank 8 |
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $fill in the blank 10 | |
| Direct Labor Time Variance | $fill in the blank 12 | |
| Total Direct Labor Cost Variance | $fill in the blank 14 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
