PR 23-1A Direct materials and direct labor variance analysis OBJ. 2, 3 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 hour Standard labor time per faucet Standard number of lbs. of brass Standard price per lb. of brass Actual price per lb. of brass Actual lbs. of brass used during the week Number of faucets produced during the week Actual wage per hour Actual hours for the week $15.00 40 minutes 3 lbs. $2.40 $2.50 14,350 lbs. 4,800 $14.40 3,240 hours Instructions Determine (a) the standard cost per unit for direct materials and direct labor; (b) the direct 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 the total direct labor cost variance.

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PR 23-1A Direct materials and direct labor variance analysis
OBJ. 2, 3
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 hour
Standard labor time per faucet
Standard number of lbs. of brass
Standard price per lb. of brass
Actual price per lb. of brass
Actual lbs. of brass used during the week
Number of faucets produced during the week
Actual wage per hour
Actual hours for the week
$15.00
40 minutes
3 lbs.
$2.40
$2.50
14,350 lbs.
4,800
$14.40
3,240 hours
Instructions
Determine (a) the standard cost per unit for direct materials and direct labor; (b) the direct
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 the total direct
labor cost variance.
Transcribed Image Text:PR 23-1A Direct materials and direct labor variance analysis OBJ. 2, 3 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 hour Standard labor time per faucet Standard number of lbs. of brass Standard price per lb. of brass Actual price per lb. of brass Actual lbs. of brass used during the week Number of faucets produced during the week Actual wage per hour Actual hours for the week $15.00 40 minutes 3 lbs. $2.40 $2.50 14,350 lbs. 4,800 $14.40 3,240 hours Instructions Determine (a) the standard cost per unit for direct materials and direct labor; (b) the direct 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 the total direct labor cost variance.
Problem 23-1A
a.
b.
C.
Standard Cost per Unit
for Direct Materials and Direct Labor
Direct Materials Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
Direct Labor Rate Variance
Direct Labor (Time) Efficiency Variance
Total Direct Labor Cost Variance
THE
Wrong
Wrong
Wrong
Wrong
Wrong
Wrong
Transcribed Image Text:Problem 23-1A a. b. C. Standard Cost per Unit for Direct Materials and Direct Labor Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance Direct Labor Rate Variance Direct Labor (Time) Efficiency Variance Total Direct Labor Cost Variance THE Wrong Wrong Wrong Wrong Wrong Wrong
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