Healing Touch manufactures massage chairs with the following standard cost struc

Question

Healing Touch manufactures massage chairs with the following standard cost structure:
Standard Cost Sheet: Massage Chair

      Metal tubing              6 meters @ $3                   $18.00

      Leather                     2 Sq. meters @ $7               14.00

      Padding                     3 lilograms @ $4                 12.00

      Direct Labor               4 hrs. @ $15                       60.00

Total Standard Cost                                               $104.00

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

Actual Costs Incurred for the month: Massage Chair

      Metal tubing                 3,100 meters              $9,455

      Leather                        1,100 sq. meters          7,722

      Padding                       1,600 kilograms            6,560

      Direct Labor                1,800 hours                 27,270

Total cost                                                          $51,007

a) Calculate all materials and labor variances (including price, quantity, wage rate, and labor efficiency variances)

b) Summarize and analyze the manufacturing operations for the month

Explanation / Answer

http://www.cramster.com/answers-nov-10/accounting/material-labor-variances-healing-touch-manufactures-massage-chairs_1038460.aspx refer this

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