Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a small manufacturing facility. The
Question:
Direct Materials and Direct Labor Variance Analysis
Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has employees. Each employee presently provides hours of labor per week. Information about a production week is as follows:
Standard wage per hr $
Standard labor time per faucet min.
Standard number of lb of brass lb
Standard price per lb of brass $
Actual price per lb of brass $
Actual lb of brass used during the week lb
Number of faucets produced during the week
Actual wage per hr $
Actual hrs for the week hrs
Required:
a Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
Direct materials standard cost per unit $fill in the blank
Direct labor standard cost per unit fill in the blank
Total standard cost per unit $fill in the blank
b Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to two decimal places, if necessary. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct materials price variance $fill in the blank
Direct materials quantity variance fill in the blank
Total direct materials cost variance $fill in the blank
c Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac