Comfort inc manufactures luxury leather armchairs the

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Reference no: EM13391226

Comfort Inc. manufactures luxury leather armchairs. The standard cost for material and labor is $89.20 per chair. This includes 8 kilograms of direct material at a standard cost of $5.00 per kilogram, and 6 hours of direct labor at $8.20 per hour. The following data relate to May.

• Units completed: 5,600 chairs.

• Purchases of materials: 50,000 kilograms for $249,250

• Actual quantity of direct materials used: 51,500kg

• Total actual labor costs: $300,760

• Actual hours of labor: 36,500 hours

• Work-in-process inventory on May 1: none.

• Work-in-process inventory on May 31: 800 chairs (75 percent complete as to labor; material is issued at the beginning of processing).

Required:

Compute the following amounts. Indicate whether each variance is favorable or unfavorable.

a. Direct materials price variance for May

b. Direct materials quantity variance for May

c. Direct-labor rate variance for May

d. Direct labor efficiency variance for May

Reference no: EM13391226

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