Question

Abbeville Fixture Company manufactures units in a small manufacturing facility. The units are made from brass. Manufacturing has 60 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Standard wage per hour	$17.4
Standard labor time per unit	20 min.
Standard number of lbs. of brass	1.9 lbs.
Standard price per lb. of brass	$9.25
Actual price per lb. of brass	$9.5
Actual lbs. of brass used during the week	17,613 lbs.
Number of units produced during the week	9,000
Actual wage per hour	$17.92
Actual hours for the week (60 employees × 36 hours)	2,160 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 variance, 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 variance as a positive number.

Direct Labor Rate Variance	$
Direct Labor Time Variance	$
Total Direct Labor Cost Variance	$

Answer 1

a
Direct materials standard cost per unit	17.58		=1.9*9.25
Direct labor standard cost per unit	5.80		=17.4*20/60
Total standard cost per unit	23.38
b
Direct Materials Price Variance	4403	Unfavorable	=17613*(9.5-9.25)
Direct Materials Quantity Variance	4745	Unfavorable	=9.25*(17613-9000*1.9)
Total Direct Materials Cost Variance	9149 or 9148	Unfavorable	=(17613*9.5)-(9000*1.9*9.25)
c
Direct Labor Rate Variance	1123	Unfavorable	=2160*(17.92-17.4)
Direct Labor Time Variance	-14616	Favorable	=17.4*(2160-9000*20/60)
Total Direct Labor Cost Variance	-13493	Favorable	=(2160*17.92)-(9000*17.4*20/60)