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Direct Materials and Direct Labor Variance Analysis

Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 60 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

Standard wage per hr.	$14.40
Standard labor time per faucet	15 min.
Standard number of lb. of brass	1.70 lb.
Standard price per lb. of brass	$9.25
Actual price per lb. of brass	$9.50
Actual lb. of brass used during the week	11,600 lb.
Number of faucets produced during the week	6,600
Actual wage per hr.	$14.80
Actual hrs. per week	1,920 hrs.

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 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. 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	Unfavorable
Direct materials quantity variance	fill in the blank 6	Unfavorable
Total direct materials cost variance	$fill in the blank 8	Unfavorable

c. Determine the direct labor rate variance, direct labor time 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.

Direct labor rate variance	$fill in the blank 10	Unfavorable
Direct labor time variance	fill in the blank 12	Unfavorable
Total direct labor cost variance	$fill in the blank 14	Unfavorable

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