Problem - Best Bathware Company manufactures faucets in a small manufacturing facility. The faucets are made of zinc. Manufacturing has 50 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
# of manufacturing employees 50
Hours of labor a week/employee 36
Standard wage per hour $14.60
Standard labor time per faucet 15 minutes
Standard # pds. of zinc 1.6 lbs.
Standard price per pds. of zinc $11.50
Actual price per pds. of zinc $11.75
Actual pds. of zinc used per week 12,400
# of faucets produced during week 7,500
Actual wage per hr $15.00
Actual hours per week 1,800 hours
Requirements: Determine the
1) Standard cost per unit for direct materials and direct labor
2) The price variance, the quality variance, and total direct materials cost variance
3) The rate variance, time variance, and total direct labor cost variance (hint: direct labor time variance = $1095 F).