AtHome Fixtures Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 80 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
|
Standard wage per hour |
$14.00 |
|
Standard labor time per faucet |
15 minutes |
|
Standard number of pounds of zinc |
1.8 lbs. |
|
Standard price per pound of zinc |
$9.50 |
|
Actual price per pound of zinc |
$9.20 |
|
Actual pounds of zinc used during the week |
21,900 lbs. |
|
Number of faucets produced during the week |
12,000 |
|
Actual wage per hour |
$14.50 |
|
Actual hours per week |
2,880 hours |
Instructions
Determine (a) the standard cost per unit for direct materials and direct labor; (b) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance.