Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing

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Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hr...............................................................$14.50
Standard labor time per faucet..................................................12 min.
Standard number of lbs. of zinc...................................................1.8 lbs.
Standard price per lb. of zinc...................................................$12.00
Actual price per lb. of zinc........................................................$11.75
Actual lbs. of zinc used during the week...........................15,100 lbs.
Number of faucets produced during the week..................8,000
Actual wage per hr....................................................................$15.10
Actual hrs. per week..............................................................1,800 hrs.
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.

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Related Book For  book-img-for-question

Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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