Oasis Faucet Company manufactures faucets in a small manufacturing facility. The

Question

Oasis Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

standard wage per hr       $14.50

standard labor time per faucet    12min

standard # of lbs. of zinc         1.8lbs

standard price per lb. of zinc    $12

actual price per lb of zinc    $11.75

actual lbs of zinc used during the week    8,000

actual wage per hr                 $15.10

actual hrs per week           1,800 hrs

Required:

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

b.  Determine the price variance, quantity variance, and total direct materials cost variance. Use the minus sign to enter favorable variances as negative numbers.

c.  Determine the rate variance, time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers.

Direct materials standard cost per faucet: $ Direct labor standard cost per faucet: $ Total cost per faucet: $

Explanation / Answer

Required:

  

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:

$

Direct materials standard cost per faucet:

$

Direct labor standard cost per faucet:

$

Total cost per faucet:

$

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