Reference no: EM132575077

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 50 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:

Standard wage per hour$12.00

Standard labor time per unit20 min.

Standard number of lbs. of brass2 lbs.

Standard price per lb. of brass$10.50

Actual price per lb. of brass$10.75

Actual lbs. of brass used during the week16,686 lbs.

Number of units produced during the week8,100

Actual wage per hour$12.36

Actual hours for the week (50 employees × 35 hours)1,750

Required:

Question a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.

Question b. Determine the direct materials price variance, direct materials quantity variance, 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.

Question c. Determine the direct labor rate variance, direct labor time variance, and total direct labor 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.