9 Chapter 23 Assignment 08-15- Show e How ij Calculator rect Materials and Direc

Question

9 Chapter 23 Assignment 08-15- Show e How ij Calculator rect Materials and Direct Labor Variance Analysis beville roduction week is as follows tandard wage per hr tandard labor time per faucet Standard number of b of braws Standard pnice per lb. of brass Actual price per ib. of brass Actual tb, of brass used during the week Number of Eaucets produced dunng the weelk Actual wage per he Actual hrs. per week Required a. Determine the Company manufactures faucets in a small manufacturing facility The faucets are made from brass. Manufactur ing has 70 employees.Each employee presently provdes 40 hours of labor per week. Information $12.00 20 min 10 $9.50 59.75 17,500 8,100 $12.40 ,800 hrs enst per acet 5or árect "aterials and deect labot Rand tho cost per unt to two decimal places. Direct materials standard cost per faucet Direct labor standard cost per fsucet Total standard cost er faucet the direct material Price variance Quantity varance Type here to search

Explanation / Answer

Requirement a Direct materials standard cost per faucet = Standard material Price X Standard Quantity = $9.5 X2.10 lb 19.95 Direct labor standard cost per faucet = Standard rate X Standard time =$ 12 X (20 Min/60 Min) 4 Total Standard cost per faucet 23.95 Requirement b Material Price Variance (Standard Price - Actual Price) X Actual Quantity Consumed = [9.50 - 9.75] X 17500 lb 4375 Unfavourable Material Quantity Variance (Standard Quantity for Actual Output - Actual Quantity) X Standard Price = [(8100 x 2.1 lb) - 17500] X $9.5 4655 Unfavourable Total direct Materials cost variance 9030 Unfavourable Requirement c Labour Rate Variance (Standard rate - Actual rate) X Actual Hours = [12.00 - 12.40] X 2800 hours 1120 Unfavourable Labour Efficieny Variance (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate = [(8100 x20Min/60 Min ) - 2800 Hrs] X $12 = [2700 - 2800 Hrs] X $12 1200 Unfavourable Total direct labor cost variance 2320 Unfavourable

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.