Best Faucet Company manufactures faucets in a small manufacturing facility. The

Question

Best Faucet Company manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Manufacturing has 50 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows:

Required:

a. Determine the standard cost per faucet for direct materials and direct labor. Round the cost per unit to two decimal places.

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materialscost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

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.

Standard wage per hour $13.2 Standard labor time per faucet 10 min. Standard number of lbs. of zinc 1.9 lbs. Standard price per lb. of zinc $9.25 Actual price per lb. of zinc $9.5 Actual lbs. of zinc used during the week 16,400 lbs. Number of faucets produced during the week 8,400 Actual wage per hour $13.6 Actual hours per week 1,600 hrs.

Explanation / Answer

a. Standard cost per faucet:

b. Direct materials variances:

c. Direct labor variances:

Direct materials cost $ 17.575 Direct labor cost $ 2.20 Total standard cost per faucet $ 19.775

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