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 70 employees. Each employee presently provides 38 hours of labor per week. Information about a production week is as follows: Standard wage per hr. $20.00
Standard labor time per faucet 30 min.
Standard number of lbs. of brass 2.5 lbs.
Standard price per lb. of brass $1.80
Actual price per lb. of brass $1.95
Actual lbs. of brass used during the week 13,000 lbs.
Number of faucets produced during the week 5,000
Actual wage per hr. $18.75
Actual hrs. for the week (70 employees × 38 hours) 2,660
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 Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance