Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in a small manufacturing facility. The units 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 $13.8
Standard labor time per unit 15 min.
Standard number of lbs. of brass 2 lbs.
Standard price per lb. of brass $9.75
Actual price per lb. of brass $10
Actual lbs. of brass used during the week 15,450 lbs.
Number of units produced during the week 7,500
Actual wage per hour $14.21
Actual hours for the week (30 employees × 40 hours) 1,200 hrs.
Required:A. Determine the standard cost per unit for direct materials and direct labor.
B. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
C. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.