# Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently

Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Standard wage per hour \$10.80 Standard labor time per unit 15 min. Standard number of lbs. of brass 1.7 lbs. Standard price per lb. of brass \$13.00 Actual price per lb. of brass \$13.25 Actual lbs. of brass used during the week 12,082 lbs. Number of units produced during the week 6,900 Actual wage per hour \$11.12 Actual hours for the week (30 employees × 40 hours) 1,200 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 \$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. 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 \$fill in the blank 4 Direct Materials Quantity Variance \$fill in the blank 6 Total Direct Materials Cost Variance \$fill in the blank 8 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 \$fill in the blank 10 Direct Labor Time Variance \$fill in the blank 12 Total Direct Labor Cost Variance \$fill in the blank 14

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