Comprehensive standard costing problem Eddelberg Corporation makes picnic tables in a standard costing production environment. The production standards for the tables are listed on the next page.

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Direct materials: 60 feet board feet of treated lumber @ $0.40/ft. 30 wood screws @ $0.15 each...... .1 gallons of finish @ $16.00 per gallon $9.00 per hour.... Direct labor: 1.5 hours Total standard cost of one picnic table ... Manufacturing overhead: 1.5 hours @ $6.00 per hour $24.00 4.50 1.60 13.50 9.00 $52.60 The manufacturing overhead rate is based on expected production of 10,000 picnic tables. The variable part of the overhead rate is $2.00 per hour. During the period 9,700 chairs were manufactured. The company incurred the following production costs. Quantity Purchased and Used Direct materials: 596,000 bd. ft. of treated lumber 295,000 wood screws 950 gallons of finish Direct labor: 15,500 hours.. Manufacturing overhead (actual cost) Total manufacturing costs Total Cost $268,200 35,400 17,100 136,400 92,600 $549,700 REQUIRED a. Compute the direct material price and quantity variances. b. Compute the direct labor rate and efficiency variances. c. Compute the manufacturing overhead spending, efficiency, and volume variances. d. Compute the total amount of variance and compute the total variance as a percentage of standard cost. e. Prepare a report showing the change in production costs caused by the performance of production labor for the period.