Reference no: EM132716824
Problem - 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
Required -
(a) Determine the standard cost per unit for direct materials and direct labor.
(b) Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
(c) Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.