Best Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 40 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour |
$12.60 |
| Standard labor time per faucet |
10 min. |
| Standard number of lbs. of zinc |
1.4 lbs. |
| Standard price per lb. of zinc |
$13.00 |
| Actual price per lb. of zinc |
$13.25 |
| Actual lbs. of zinc used during the week |
9,900 lbs. |
| Number of faucets produced during the week |
6,900 |
| Actual wage per hour |
$13.00 |
| Actual hours per week |
1,280 hrs. |
Required:
a. Determine the standard cost per faucet for direct materials and direct labor. Round the cost per unit to two decimal places.
| Direct materials standard cost per faucet |
$ |
| Direct labor standard cost per faucet |
$ |
| Total standard cost per faucet |
$ |
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Price variance |
$ |
|
| Quantity variance |
$ |
|
| Total direct materials cost variance |
$ |
|
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Rate variance |
$ |
|
| Time variance |
$ |
|
| Total direct labor cost variance |