The Cozyhome Company makes doghouses. These houses are built in two departments. Department A cuts ¥/,-inch plywood into two shapes (| and 2) and paints the pieces with quick-drying paint. Doghouses are assembled in Department B using three pieces of shape | and two pieces of shape 2. Direct labor quantity standards for the operations of these two departments are shown here:

Department A : Cutting and painting Shape | 0.21 hours per piece Shape 2 0.25 hours per piece Department B: Assembly ASSEM DIY Aeaasecnsters nee ears ee Le | direct labor hour per doghouse On August 18, actual production was as follows:
Department A:
Piecestaishapenlspas.wea.cseecn ee. ees 80 cut and paintéd nieces ofishaper2ug. tteeenct, Met, Sot. eth een 40 cut and painted Department B:
BD ORTIOUSES i sressscantncssrissatrretes es Ate Meaieneated icaisssoactase mates areseers 20 assembled Three laborers worked 8 hours each in Department A and three laborers worked 8 hours each in Department B. All workers earn $10.00 per hour. At the beginning of the day, six pieces of shape | but no pieces of shape 2 were ready for assembly.
Required: (1) Compute the standard direct labor cost of one doghouse.
(2) Compute the standard direct labor hours budgeted in Departments A and B for the work done in the Cozyhome shop on August 18.
(3) Compute the direct labor efficiency variances occurring in each of the departments.
(4) Write a brief report on the direct labor performance of the two departments and include a suggestion on how, in the future, managers might avoid the problem that occurred on August 18.

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