P 12-9: Healing Touch Healing Touch manufactures massage chairs with the following standard cost structure: Standard Cost Sheet: Massage Chair 6 m @ $3 2 sq m @ $7 3 kg @ $4 4 hr@ $15 Metal tubing Leather Padding Direct labor Total cost Metal tubing Leather Padding Direct labor Total standard cost $18.00 14.00 12.00 60.00 $104.00 During the month, 500 chairs are manufactured and the following costs incurred: Actual Costs Incurred for the Month: Massage Chair 3,100 m 1,100 sq m 1,600 kg 1,800 hr $ 9,455 7,722 6,560 27,270 $51,007 Required: a. Calculate all materials and labor variances (including price, quantity, wage rate, and labor efficiency variances). b. Write a short report summarizing and analyzing the manufacturing operations for the month.
P 12-9: Healing Touch Healing Touch manufactures massage chairs with the following standard cost structure: Standard Cost Sheet: Massage Chair 6 m @ $3 2 sq m @ $7 3 kg @ $4 4 hr@ $15 Metal tubing Leather Padding Direct labor Total cost Metal tubing Leather Padding Direct labor Total standard cost $18.00 14.00 12.00 60.00 $104.00 During the month, 500 chairs are manufactured and the following costs incurred: Actual Costs Incurred for the Month: Massage Chair 3,100 m 1,100 sq m 1,600 kg 1,800 hr $ 9,455 7,722 6,560 27,270 $51,007 Required: a. Calculate all materials and labor variances (including price, quantity, wage rate, and labor efficiency variances). b. Write a short report summarizing and analyzing the manufacturing operations for the month.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:P 12-9:
Healing Touch
Healing Touch manufactures massage chairs with the following standard cost structure:
Standard Cost Sheet: Massage Chair
6 m @ $3
2 sq m @ $7
3 kg @ $4
4 hr @ $15
Metal tubing
Leather
Padding
Direct labor
Total cost
Metal tubing
Leather
Padding
Direct labor
Total standard cost
$18.00
14.00
12.00
60.00
$104.00
During the month, 500 chairs are manufactured and the following costs incurred:
Actual Costs Incurred for the Month: Massage Chair
3,100 m
1,100 sq m
1,600 kg
1,800 hr
$ 9,455
7,722
6,560
27,270
$51,007
Required:
a. Calculate all materials and labor variances (including price, quantity, wage rate, and labor efficiency variances).
b. Write a short report summarizing and analyzing the manufacturing operations for the month.
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