Integrated Fixtures Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 62 employees. Each employee presently provides 38 hours of labor per week. Information about a production week is as follows:
Standard wage per hour ............ $16.00
Standard labor time per faucet ......... 15 minutes
Standard number of pounds of zinc ....... 1.8 pounds
Standard price per pound of zinc ........ $9.00
Actual price per pound of zinc ......... $8.80
Actual pounds of zinc used during the week .. 18,175 lbs.
Number of faucets produced during the week ... 10,000
Actual wage per hour ........... $16.25
Actual hours per week ............ 2,356 hours
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,
(c) The rate variance, time variance, and total direct labor cost variance.