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ABC employ two people to manufacture chairs. Worker A is receiving $30 per hour and worker B is receiving $20 per hour. One chair requires 10 labor hours. Worker A and B spends 60% and 40% hours respectively in making one chair. In the month April, the actual time spend by worker A and B is 145 hours and 108 hours respectively.
Required:
Question 1: What is the budgeted cost of direct labor for 25 chairs?
Question 2: Calculate the total direct labor price and efficiency variances.
Question 3: For the 25 chairs, what is the total actual amount of direct labor used? What is the actual direct labor input mix percentage?
Question 4: What is the budgeted amount of worker A and B's labor that should have been used for the 25 chairs?
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