Direct Materials and Direct Labor Variance Analysis

Jericho Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 45 employees. Each employee presently provides 38 hours of labor per week. Information about a production week is as follows:

Line Item Description	Value
Standard number of lbs. of brass	0.4 lb.
Standard price per lb. of brass	$0.80
Standard wage per hr.	$21.00
Standard labor time per faucet	15 min.
Actual price per lb. of brass	$0.90
Actual lbs. of brass used during the week	4,500 lbs.
Number of faucets produced during the week	10,000
Actual wage per hr.	$22.00
Actual hrs. for the week (45 employees 38 hours)	1,710

Required:

a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.

Line Item Description	Cost per Unit
Direct materials standard cost per unit	$
Direct labor standard cost per unit	$
Total standard cost per unit	$

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Line Item Description	Amount	Variance
Direct Materials Price Variance	$	Favorable or Unfavorable
Direct Materials Quantity Variance	$	Favorable or Unfavorable
Total Direct Materials Cost Variance	$	Favorable or Unfavorable

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.

Line Item Description	Amount	Variance
Direct Labor Rate Variance	$	Favorable or Unfavorable
Direct Labor Time Variance	$	Favorable or Unfavorable
Total Direct Labor Cost Variance	$	Favorable or Unfavorable