# 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 70 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 70 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour \$15.60 Standard labor time per unit 20 min. Standard number of lbs. of brass 1.2 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 11,124 lbs. Number of units produced during the week 9,000 Actual wage per hour \$16.07 Actual hours for the week (70 employees × 32 hours) 2,240 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 \$

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