rect Materials and Direct Labor Variance Analysis ericho Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 45 employees. Each employem information about a production week is as follows: Standard number of lbs. of brass Standard price per tb. of brass Standard wage per hr. Standard labor time per faucet Actual price per lb. of brass Actual lbs. of brass used during the week Number of faucets produced during the week Actual wage per he Actual hrs. for the week (45 employees x 38 hours) Required: 0.4. 10.80 $21.00 15 min. $0.90 4,500 lbs. 10,000 $22.00 1,710 a. Determine the standard cost per unit for direct materials and direct labor. Round the UO 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 n as a positive number,
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Standard labor time per faucet
Actual price per lb. of brass
Actual lbs. of brass used during the week
Number of faucets produced during the week
Actual wage per hr.
Actual hrs. for the week (45 employees x 38 hours)
Required:
15 min.
$0.90
4,500 lbs
10,000
$22.00
1,710
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. 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
Drect Labor Time Variance
Tetal Direct Labor Cost Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffab3cc17-340b-44cf-840a-1255cd02c78f%2Fcb6eb5cd-d54f-44f5-aae3-b99ccc5bcc84%2Ffa1xx74_processed.jpeg&w=3840&q=75)
![Direct Materials and Direct Labor Variance Analysis
Jericho Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 45 employees. Each employee presently provides 38 hours of labor per week.
Information about a production week is as follows:
Standard number of lbs. of brass
Standard price per lb. of brass
Standard wage per hr.
Standard labor time per faucet
Actual price per lb. of brass
Actual lbs. of brass used during the week
Number of faucets produced during the week
Actual wage per br
Actual hrs, for the week (45 employees x 38 hours)
Required:
0.4 lb.
$0.80
$21.00
15 min.
$0.90
4,500 lbs.
10,000
$22.00
1,710
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, 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffab3cc17-340b-44cf-840a-1255cd02c78f%2Fcb6eb5cd-d54f-44f5-aae3-b99ccc5bcc84%2Fe3bmt2qi_processed.jpeg&w=3840&q=75)
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