FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Direct Materials and Direct Labor
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 | $15.60 |
| Standard labor time per unit | 15 min. |
| Standard number of lbs. of brass | 1.3 lbs. |
| Standard price per lb. of brass | $12.50 |
| Actual price per lb. of brass | $12.75 |
| Actual lbs. of brass used during the week | 11,649 lbs. |
| Number of units produced during the week | 8,700 |
| Actual wage per hour | $16.07 |
| Actual hours for the week (50 employees × 35 hours) | 1,750 |
Required:
a. Determine the
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.
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.
Transcribed Image Text: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, 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.
Direct Materials Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost varlance. 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.
Direct Labor Rate Variance
Direct Labor Time Variance
Total Direct Labor Cost Variance
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