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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 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.4 Ibs. Standard price per Ib. of brass $11.75 Actual price per Ib. of brass $12.00 Actual Ibs. of brass used during the week 10,382 Ibs. Number of units produced during the week 7,200 Actual wage per hour $14.83 Actual hours for the week (40 employees × 35 hours) 1,400 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit 2$ 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 2$ Direct Materials Quantity Variance $ Total Direct Materials Cost Variance $

Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.4 Ibs. Standard price per Ib. of brass $11.75 Actual price per Ib. of brass $12.00 Actual Ibs. of brass used during the week 10,382 Ibs. Number of units produced during the week 7,200 Actual wage per hour $14.83 Actual hours for the week (40 employees × 35 hours) 1,400 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit 2$ 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 2$ Direct Materials Quantity Variance $ Total Direct Materials Cost Variance $

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8EA: Queen Industries uses a standard costing system in the manufacturing of its single product. It...
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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 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.4 Ibs. Standard price per Ib. of brass $11.75 Actual price per Ib. of brass $12.00 Actual Ibs. of brass used during the week 10,382 Ibs. Number of units produced during the week 7,200 Actual wage per hour $14.83 Actual hours for the week (40 employees × 35 hours) 1,400 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit 2$ 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 2$ Direct Materials Quantity Variance $ Total Direct Materials 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 35 hours of labor per week. Information about a production week is as follows: Standard wage per hour $14.40 Standard labor time per unit 20 min. Standard number of Ibs. of brass 1.4 Ibs. Standard price per Ib. of brass $11.75 Actual price per Ib. of brass $12.00 Actual Ibs. of brass used during the week 10,382 Ibs. Number of units produced during the week 7,200 Actual wage per hour $14.83 Actual hours for the week (40 employees × 35 hours) 1,400 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit 2$ 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 2$ Direct Materials Quantity Variance $ Total Direct Materials Cost Variance $
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