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Direct Materials and Direct Labor Variance Analysis

Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$11.40
Standard labor time per unit	15 min.
Standard number of lbs. of brass	1.2 lbs.
Standard price per lb. of brass	$13.00
Actual price per lb. of brass	$13.25
Actual lbs. of brass used during the week	8,899 lbs.
Number of units produced during the week	7,200
Actual wage per hour	$11.74
Actual hours for the week (50 employees 32 hours)	1,600

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 1
Direct labor standard cost per unit	$fill in the blank 2
Total standard cost per unit	$fill in the blank 3

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. 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 4	FavorableUnfavorableUnfavorable
Direct Materials Quantity Variance	$fill in the blank 6	FavorableUnfavorableUnfavorable
Total Direct Materials Cost Variance	$fill in the blank 8	FavorableUnfavorableUnfavorable

c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Labor Rate Variance	$fill in the blank 10	FavorableUnfavorableUnfavorable
Direct Labor Time Variance	$fill in the blank 12	FavorableUnfavorableFavorable
Total Direct Labor Cost Variance	$fill in the blank 14	FavorableUnfavorableFavorable

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