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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 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:
Standard wage per hour | $10.80 |
Standard labor time per unit | 15 min. |
Standard number of lbs. of brass | 1.7 lbs. |
Standard price per lb. of brass | $13.00 |
Actual price per lb. of brass | $13.25 |
Actual lbs. of brass used during the week | 12,082 lbs. |
Number of units produced during the week | 6,900 |
Actual wage per hour | $11.12 |
Actual hours for the week (30 employees × 40 hours) | 1,200 |
Required:
a. Determine the
Direct materials standard cost per unit | $fill in the blank 1 |
Direct labor standard cost per unit | $fill in the blank 2 |
Total standard cost per unit | $fill in the blank 3 |
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 | $fill in the blank 4 | |
Direct Materials Quantity Variance | $fill in the blank 6 | |
Total Direct Materials Cost Variance | $fill in the blank 8 |
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.
Direct Labor Rate Variance | $fill in the blank 10 | |
Direct Labor Time Variance | $fill in the blank 12 | |
Total Direct Labor Cost Variance | $fill in the blank 14 |
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