# Question: Heritage Furniture Co uses a standard cost system One of

Heritage Furniture Co. uses a standard cost system. One of the company’s most popular products is an oak entertainment center that looks like an old icebox but houses a television, stereo, or other electronic components. The per-unit standard costs of the entertainment center, assuming a “normal” volume of 1,000 units per month, are as follows:
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During July, 800 entertainment centers were scheduled and produced at the following actual unit costs:
Direct materials, 110 feet at \$1.20 per foot. . . . . . . . . . . . . . . . . \$132.00
Direct labor, 51⁄2 hours at \$7.80 per hour . . . . . . . . . . . . . . . 42.90
Manufacturing overhead, \$18,480  800 units . . . . . . . . . . . . 23.10
Total actual unit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . .... \$198.00
Instructions
a. Compute the following cost variances for the month of July:
1. Materials price variance
2. Materials quantity variance
3. Labor rate variance
4. Labor efficiency variance