Question

Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 80 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:
Standard wage per hr. .................. $ 16.80
Standard labor time per faucet .............. 15 min.
Standard number of lbs. of zinc ............. 2.6 lbs.
Standard price per lb. of zinc .............. $ 22.00
Actual price per lb. of zinc ............... $ 21.85
Actual lbs. of zinc used during the week ..........31,750 lbs.
Number of faucets produced during the week ........ 12,000
Actual wage per hr. .................. $ 17.00
Actual hrs. for the week ................. 3,200 hrs.

Instructions Determine
(a) The standard cost per unit for direct materials and direct labor;
(b) The direct materials price variance, direct materials quantity variance, and total direct materials cost variance;
(c) The direct labor rate variance, direct labor time variance, and total direct labor cost variance.



$1.99
Sales34
Views1045
Comments0
  • CreatedJune 27, 2014
  • Files Included
Post your question
5000