Direct Materials and Direct Labor Variance Analysis
Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:
|Standard wage per hour||$13.80|
|Standard labor time per faucet||15 min.|
|Standard number of lbs. of zinc||1.8 lbs.|
|Standard price per lb. of zinc||$10.50|
|Actual price per lb. of zinc||$10.75|
|Actual lbs. of zinc used during the week||15,000 lbs.|
|Number of faucets produced during the week||8,100|
|Actual wage per hour||$14.20|
|Actual hours per week||1,400 hrs.|
a. Determine the standard cost per faucet for direct materials and direct labor. Do not round intermediate calculations and round your answers to the nearest cent.
|Direct materials standard cost per faucet||$|
|Direct labor standard cost per faucet|
|Total cost per faucet||$|
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount
|Total direct materials cost variance||$|
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.
|Total direct labor cost variance||$|
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