Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Instruction
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; and
(c) The rate variance, time variance, and total direct labor costvariance.

Transcribed Image Text:

Standard wage per hr. Standard labor time per faucet Standard number of lbs. of zinc Standard price per lb. of zinc Actual price per lb. of zinc Actual lbs. of zinc used during the week Number of faucets produced during the week Actual wage per hr. Actual hrs. per week $18.00 12 min. 0.80 lb. $1.25 $1.40 10,200 lbs. 12,000 $18.75 2,160 hrs.