ACC 406 Lecture : Standard Costing
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Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
Standard wage per hour | $13.2 |
Standard labor time per faucet | 20 min. |
Standard number of lbs. of brass | 1.7 lbs. |
Standard price per lb. of brass | $9.75 |
Actual price per lb. of brass | $10 |
Actual lbs. of brass used during the week | 11,031 lbs. |
Number of faucets produced during the week | 6,300 |
Actual wage per hour | $13.6 |
Actual hours per week (70 employees à 36 hours) | 2,520 hrs. |
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 faucet | $ |
Direct labor standard cost per faucet | $ |
Total standard cost per faucet | $ |
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.
Price variance | $ | Unfavorable |
Quantity variance | $ | Unfavorable |
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.
Rate variance | $ | Unfavorable |
Time variance | $ | Unfavorable |
Total direct labor cost variance | $ | Unfavorable |