Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing
Question:
Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 90 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hr..................................................$15.00
Standard labor time per faucet.....................................40 min.
Standard number of lbs. of brass..................................3 lbs.
Standard price per lb. of brass.........................................$2.40
Actual price per lb. of brass............................................$2.50
Actual lbs. of brass used during the week......................14,350 lbs.
Number of faucets produced during the week................4,800
Actual wage per hr.............................................................$14.40
Actual hrs. for the week (90 employees × 36 hours).........3,240
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; and
(C) The direct labor rate variance, direct labor time variance, and total direct labor cost variance.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac