Abbeville Fixture Company manufactures faucets in a small manufacturing facility

Question

Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows:

Actual hours for the week (40 employees × 35 hours)

1,400 hrs.

Standard wage per hour $10.80 Standard labor time per faucet 20 min. Standard number of lbs. of brass 2 lbs. Standard price per lb. of brass $10.25 Actual price per lb. of brass $10.50 Actual lbs. of brass used during the week 17,304 lbs. Number of faucets produced during the week 8,400 Actual wage per hour $11.12

Actual hours for the week (40 employees × 35 hours)

1,400 hrs.

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 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. 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 Direct Materials Quantity Variance Total Direct Materials Cost Variance c. Determine the direct labor rate varlance, 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 varlance as a posltive number Direct Labor Rate Varlance Dlrect Labor Total Direct Labor Cost Varlance Time Varlance

Explanation / Answer

a. Direct materials Standard cost per Faucet (2*$10.25) 20.5 Direct labor standard cost per faucet (10.80*20/60) 3.6 total standard cost per faucet 24.1 b) Materials price variance (Actual price - standard price)*AQ purchased (10.50-10.25)*17,304 4326 U Material qty variance (Actual qty - standard qyt)*Standard price (17,304    - 8400*2)*10.25 5166 U total direct materials cost variance 9492 U c) Rate variance (Actual rate - standard rate)*actual hours (11.12 - 10.80)*1400 448 U Time variance (Actual hours - standard hours)*standard rate (1400   - 8400*20/60)*10.8 15,120 F total direct labor cost variance 14,672 F

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