Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as f s follows: Standard wage per hour Standard labor time per unit 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 units produced during the week Actual wage per hour Actual hours for the week (70 employees x 35 hours) Required: $15.60 20 min. 2 lbs. $9.50 $9.75 17,922 lbs. 8,700 $16.07 2,450 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 vanano, direct materials quantity vianance, and total direct materials cost Narance. 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance $
Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as f s follows: Standard wage per hour Standard labor time per unit 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 units produced during the week Actual wage per hour Actual hours for the week (70 employees x 35 hours) Required: $15.60 20 min. 2 lbs. $9.50 $9.75 17,922 lbs. 8,700 $16.07 2,450 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 vanano, direct materials quantity vianance, and total direct materials cost Narance. 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance $
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee
presently provides 35 hours of labor per week. Information about a production week is as follows:
Standard wage per hour
Standard labor time per unit
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 units produced during the week
Actual wage per hour
Actual hours for the week (70 employees x 35 hours)
Required:
$15.60
20 min.
2 lbs.
$9.50
$9.75
17,922 lbs.
8,700
$16.07
2,450
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 vanano, direct materials quantity variance, and total direct materials cost ananice. 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
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
$
$
$
Transcribed Image Text:Standard price per lb. of brass
Actual price per lb. of brass
Actual lbs. of brass used during the week
Number of units produced during the week
2 185
$9.50
$9.75
17,922 lbs.
Actual wage per hour
Actual hours for the week (70 employees x 35 hours)
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
Direct labor standard cost per unit
Total standard cost per unit
8,700
$16.07
2,450
Direct Labor Rate Variance
Direct Labor Time Variance i
Total Direct Labor Cost Variance
b. Determine the direct materiais price v sance, direct materials quanbry vanance, 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.
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Direct Materials Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
c. Determine the direct labor rate variance, direct labor time vanance, and total direct Jabor 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,
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