Homework CH 7 B

1. Question
2. PR.7-1.A

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1. eBookShow Me HowCalculatorDirect Materials and Direct Labor Variance AnalysisFancy Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 100 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:

   Standard wage per hr.	$21.00
   Standard labor time per faucet	20 min.
   Standard number of lbs. of brass	5 lbs.
   Standard price per lb. of brass	$2.80
   Actual price per lb. of brass	$2.72
   Actual lbs. of brass used during the week	59,875 lbs.
   Number of faucets produced during the week	11,820
   Actual wage per hr.	$21.40
   Actual hrs. for the week	4,000 hrs.

   Required:a. Determine thestandard costper unit for direct materials and direct labor. Round the cost per unit to two decimal places.

   Direct materials standard cost per unit	$
   Direct labor standard cost per unit	$
   Total standard cost per unit	$

   b. Determine the direct materialsprice variance, direct materialsquantity variance, and total direct materialscost 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.

   Price variance	$
   Quantity variance	$
   Total direct materials cost variance	$

   c. Determine the direct laborrate variance, direct labortime 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.

   Rate variance	$
   Time variance	$
   Total direct labor cost variance	$