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Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $11.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.5 Ibs. Standard price per Ib. of brass $10.50 Actual price per Ib. of brass $10.75 Actual Ibs. of brass used during the week 12,978 Ibs. Number of units produced during the week 8,400 Actual wage per hour $11.74 Actual hours for the week (40 employees x 36 hours) 1,440 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 15.75 Direct labor standard cost per unit 3.8 v Total standard cost per unit 19.55 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. 3,245 V Unfavorable v Direct Materials Price Variance Direct Materials Quantity Variance 3,969 v Unfavorable v | 214,ר Total Direct Materials Cost Variance Unfavorable 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. 490 V Unfavorable v Direct Labor Rate Variance Direct Labor Time Variance 15,503 x Favorable v Total Direct Labor Cost Variance 15,013 x Favorable v

Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $11.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.5 Ibs. Standard price per Ib. of brass $10.50 Actual price per Ib. of brass $10.75 Actual Ibs. of brass used during the week 12,978 Ibs. Number of units produced during the week 8,400 Actual wage per hour $11.74 Actual hours for the week (40 employees x 36 hours) 1,440 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 15.75 Direct labor standard cost per unit 3.8 v Total standard cost per unit 19.55 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. 3,245 V Unfavorable v Direct Materials Price Variance Direct Materials Quantity Variance 3,969 v Unfavorable v | 214,ר Total Direct Materials Cost Variance Unfavorable 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. 490 V Unfavorable v Direct Labor Rate Variance Direct Labor Time Variance 15,503 x Favorable v Total Direct Labor Cost Variance 15,013 x Favorable v

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 4EB: Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the...
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Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $11.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.5 Ibs. Standard price per Ib. of brass $10.50 Actual price per Ib. of brass $10.75 Actual Ibs. of brass used during the week 12,978 Ibs. Number of units produced during the week 8,400 Actual wage per hour $11.74 Actual hours for the week (40 employees x 36 hours) 1,440 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 15.75 Direct labor standard cost per unit 3.8 V Total standard cost per unit 19.55 V 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 3,245 Unfavorable Direct Materials Quantity Variance 3,969 Unfavorable v 7,214 V Total Direct Materials Cost Variance Unfavorable 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 490 V Unfavorable v Direct Labor Time Variance 24 15,503 X Favorable v 15,013 X Favorable Total Direct Labor Cost Variance
Transcribed Image Text:Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows: Standard wage per hour $11.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.5 Ibs. Standard price per Ib. of brass $10.50 Actual price per Ib. of brass $10.75 Actual Ibs. of brass used during the week 12,978 Ibs. Number of units produced during the week 8,400 Actual wage per hour $11.74 Actual hours for the week (40 employees x 36 hours) 1,440 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 15.75 Direct labor standard cost per unit 3.8 V Total standard cost per unit 19.55 V 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 3,245 Unfavorable Direct Materials Quantity Variance 3,969 Unfavorable v 7,214 V Total Direct Materials Cost Variance Unfavorable 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 490 V Unfavorable v Direct Labor Time Variance 24 15,503 X Favorable v 15,013 X Favorable Total Direct Labor Cost Variance
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