Fancy Fixture Company manufactures faucets in a small manufacturing facility. The fau- cets are made from brass. Manufacturing has 100 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Standard wage per hr. Standard labor time per faucet $21.00 20 min. Standard number of Ibs. of brass 5 Ibs. $2.80 Standard price per Ib. of brass Actual price per Ib. of brass Actual Ibs. of brass used during the week Number of faucets produced during the week Actual wage per hr. $2.72 59,875 lbs. 11,820 $21.40 Actual hrs. for the week 4,000 hrs. Instructions Determine (a) the standard cost per unit for direct materials and direct labor; (b) the di- rect materials price variance, direct materials quantity variance, and total direct materials cost variance; and (c) the direct labor rate variance, direct labor time variance, and total direct labor cost variance.

Fancy Fixture Company manufactures faucets in a small manufacturing facility. The fau- cets are made from brass. Manufacturing has 100 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Standard wage per hr. Standard labor time per faucet $21.00 20 min. Standard number of Ibs. of brass 5 Ibs. $2.80 Standard price per Ib. of brass Actual price per Ib. of brass Actual Ibs. of brass used during the week Number of faucets produced during the week Actual wage per hr. $2.72 59,875 lbs. 11,820 $21.40 Actual hrs. for the week 4,000 hrs. Instructions Determine (a) the standard cost per unit for direct materials and direct labor; (b) the di- rect materials price variance, direct materials quantity variance, and total direct materials cost variance; and (c) the direct labor rate variance, direct labor time variance, and total direct labor cost variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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