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Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee presently provides 38 hours of labor per week. Information about a production week is as follows:
Standard wage per hour $20
Standard labor time per faucet 30 min
Standard number of lbs. of brass 2.5lbs
Standard price per lb. of brass $1.80
Actual price per lb. of brass $1.95
Actual lbs of brass used during the week 13,000 lbs
Number of faucets produced during the week 5,000
Actual wage per hr. $18.75
Actual hrs for the week (70 employees x 38 hours) 2,660

Determine the standard cost per unit for direct materials and labor; the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; and the direct labor rate variance, direct labor time variance, and total direct laboir cost variance.

Respuesta :

akiran007

Answer:

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance=$ 900 unfav

Total direct materials variance $ 3750

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= 125 fav

Explanation:

Standard wage per hour $20

Standard labor time per faucet 30 min  = 0.5 *5000= 2500 Hrs

Standard number of lbs. of brass 2.5lbs

Standard price per lb. of brass $1.80

Actual price per lb. of brass $1.95

Actual lbs of brass used during the week 13,000 lbs

Number of faucets produced during the week 5,000

Actual wage per hr. $18.75

Actual hrs for the week (70 employees x 38 hours) 2,660

 

Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($ 1.95 *13000)-($1.8 *5000*2.5)= ($ 1.95 *13000)-($1.8 *12500)= $ 25350 - $  22500= $ 2850

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($1.8 *13000)-($1.8 *12500)= 23400- 22500

Material Quantity Variance=$ 900 Unfav

Total direct materials variance =Material Price Variance + Material Quantity Variance= 2850 + 900 = $ 3750 Unfav

Direct Labor Rate  variance= (actual hours* actual rate)- (actual hours * standard rate)

Direct Labor Rate  variance=( 2660 *18.75)  - (2660*20)= 49875- 53200

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= (actual hours* standard rate)- (standard hours * standard rate)

Direct labor time variance= (2660 *20) -(0.5 * 5000*20)

Direct labor time variance= 53200-50,000

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= Direct Labor Rate  variance + Direct labor time variance= 3325 fav- 3200 unfav= 125 fav

The answer is :

fabric rate Variance= $ 2850 detrimental

fabric quantity Variance=$ 900 unfav

general direct substances variance $ 3750

Direct labor rate variance= $ 3325 fav

Direct labor time variance= 3200 unfavorable

overall Direct labor value Variance= 125 fav

widespread wage in line with hour $20

widespread labor time per tap 30 min = zero.5 *5000= 2500 Hrs

fashionable variety of lbs. of brass 2.5lbs

fashionable charge in step with lb. of brass $1.80

actual charge in line with lb. of brass $1.95

actual lbs of brass used at some stage in the week thirteen,000 lbs

quantity of faucets produced at some stage in the week five,000

real wage in line with hr. $18.seventy five

real hrs for the week (70 personnel x 38 hours) 2,660

material rate Variance= (real charge * actual amount)- (general fee * actual quantity)

material price Variance= ($ 1.ninety five *13000)-($1.8 *5000*2.five)= ($ 1.95 *13000)-($1.eight *12500)= $ 25350 - $ 22500= $ 2850

fabric fee Variance= $ 2850 unfavourable

fabric quantity Variance= (popular fee * real quantity)-(trendy charge * wellknown amount)

material amount Variance=($1.eight *13000)-($1.8 *12500)= 23400- 22500

fabric quantity Variance=$ 900 Unfav

total direct substances variance =material price Variance + cloth amount Variance= 2850 + 900 = $ 3750 Unfav

Direct hard work price variance= (actual hours* actual fee)- (actual hours * popular rate)

Direct exertions rate variance=( 2660 *18.75) - (2660*20)= 49875- 53200

Direct hard work fee variance= $ 3325 fav

Direct labor time variance= (actual hours* trendy fee)- (preferred hours * popular fee)

Direct hard work time variance= (2660 *20) -(0.5 * 5000*20)

Direct exertions time variance= 53200-50,000

Direct exertions time variance= 3200 adverse

general Direct exertions price Variance= Direct exertions rate variance + Direct labor time variance= 3325 fav- 3200 unfav= 125 fav.

What do mean by standard cost?

A popular price is the budgeted cost of a regular production method in opposition to which real prices are as compared. Of route, if a new product, carrier, or method is to be done, preliminary widespread charges will be expected.

To decide those costs, you may want to multiply the fee of each through the amount (in units or hours). for instance, if the direct materials charge is $10 and the standard quantity is 20 pounds in line with the unit, you would multiply $10 through 20 to get $two hundred. This will be the usual cost for the direct materials simplest.

Standard costing additionally referred to as general value accounting, is used to set budgets and plan for destiny charges. It is a form of cost accounting mainly used in the production region because it's far less complicated to allocate prices without delay to the merchandise being produced.

Learn more about standard costs here: https://brainly.com/question/25279292

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