Material and labor variances Homes-R-Us Construction Company uses two types of labor to install wallpaper in its custom designed homes. Below are standards for wallpaper installations:

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Vinyl-coated paper cost Metallic paper cost Wallpaper paste. Standard paper quantity Journeyman labor cost Apprentice labor cost.. $.40 per sq. ft. of paper 1.00 per sq. ft. of paper 1.00 per 100 sq. ft. of wall area 110% of wall area $7.00 per hr. $4.50 per hr. Journeyman labor time Apprentice labor time 2 hrs. per 100 sq. ft. of wall area 3 hrs. per 100 sq. ft. of wall area The home currently under construction required the following quantities and costs for wallpaper installations: Vinyl paper Metallic paper Materials used: Vinyl paper Metallic paper Wallpaper paste Journeyman labor Apprentice labor REQUIRED a. Compute the labor and material variances. 1,000 sq. ft. of wall area 600 sq. ft. of wall area 1,160 sq. ft. $450 630 sq. ft. 650 19 34 hrs. 238 52 hrs. 240 b. Prepare journal entries to record the cost of construction and the variances.