Direct materials and direct labor variance analysis

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Reference no: EM13824052

Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hr. $14.50

Standard labor time per faucet 12 min.

Standard number of lbs. of zinc 1.8 lbs.

Standard price per lb. of zinc $12.00

Actual price per lb. of zinc $11.75

Actual lbs. of zinc used during the week 15,100 lbs.

Number of faucets produced during the week 8,000

Actual wage per hr. $15.10

Actual hrs. per week 1,800 hrs.

Instructions

Determine (a) the standard cost per unit for direct materials and direct labor; (b) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance.

Reference no: EM13824052

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