Healing Touch manufactures massage chairs with the following standard cost structure:

During the month 500 chairs are manufactured and the following costs incurred:

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.

Transcribed Image Text:

Standard Cost Sheet: Massage Chair Metal tubing Leather $ 18.00 14.00 6 meters @ $3 2 square meters @ $7 3 kilograms @ $4 Padding Direct labor 12.00 4 hours @ $15 60.00 Total standard cost $104.00