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
