Direct Materials and Direct Labor Variance Analysis Best Faucet Company manufact
ID: 2376073 • Letter: D
Question
Direct Materials and Direct Labor Variance Analysis
Best Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 50 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:
Standard wage per hour
$16.20
Standard labor time per faucet
10 min.
Standard number of lbs. of zinc
1.5 lbs.
Standard price per lb. of zinc
$9.25
Actual price per lb. of zinc
$9.50
Actual lbs. of zinc used during the week
12,100 lbs.
Number of faucets produced during the week
7,800
Actual wage per hour
$16.70
Actual hours per week
2,000 hrs.
a. Determine the standard cost per faucet for direct materials and direct labor. Round the cost per unit to two decimal places.
Direct materials standard cost per faucet:
$
Direct labor standard cost per faucet:
$
Total cost per faucet:
$
b. Determine the price variance, quantity variance, and total direct materials cost variance. Use the minus sign to enter favorable variances as negative numbers.
Price variance:
$
Quantity variance:
$
Total direct materials cost variance:
$
c. Determine the rate variance, time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers.
Rate variance:
$
Time variance:
$
Total direct labor cost variance:
$
Standard wage per hour
$16.20
Standard labor time per faucet
10 min.
Standard number of lbs. of zinc
1.5 lbs.
Standard price per lb. of zinc
$9.25
Actual price per lb. of zinc
$9.50
Actual lbs. of zinc used during the week
12,100 lbs.
Number of faucets produced during the week
7,800
Actual wage per hour
$16.70
Actual hours per week
2,000 hrs.
Explanation / Answer
How did you get total cost for faucet?
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