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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 40 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$17.40
Standard labor time per faucet	10 min.
Standard number of lbs. of zinc	1.7 lbs.
Standard price per lb. of zinc	$10.25
Actual price per lb. of zinc	$10.50
Actual lbs. of zinc used during the week	14,700 lbs.
Number of faucets produced during the week	8,400
Actual wage per hour	$17.90
Actual hours per week	1,600 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 faucet:	$
Direct labor standard cost per faucet:	$
Total cost per faucet:	$

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

Price variance:	$	SelectFavorableUnfavorableItem 5
Quantity variance:	$	SelectFavorableUnfavorableItem 7
Total direct materials cost variance:	$	SelectFavorableUnfavorableItem 9

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

Rate variance:	$	SelectFavorableUnfavorableItem 11
Time variance:	$	SelectFavorableUnfavorableItem 13
Total direct labor cost variance:	$	SelectFavorableUnfavorableItem 15

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