a. A standard cost card for Zets (one of the company's many products) is given below. Direct materials Direct labor Variable manufacturing overhead Total standard cost Standard Quantity or Hours 18 feet 2.5 hours 2.5 hours Standard Price or Rate Standard Cost $ 54.00 40.00 $3.00 per foot $ 16.00 per hour $ 2.80 per hour $181.00 7.00 b. During June the company purchased 510,000 feet of material for production of Zets at a cost of $3.20 per foot. All of this material was used to make 30,000 units during the month. c. The company maintains a stable workforce to produce Zets. Employees who previously performed inspections and maintenance have been reassigned as direct labor workers. During June, direct laborers worked 90,000 hours on the Zets production lines at an average pay rate of $15.85 per hour. d. Variable manufacturing overhead cost is allocated to products based on direct labor-hours. During June, the company incurred $207,000 in variable manufacturing overhead costs associated with the manufacture of Zets. e. As workers have become more familiar with lean production methods, the following trends (per unit) have emerged over the last three months: Processing time April 2.6 hours May 2.5 hours June 2.4 hours Inspection time 1.3 hours 0.9 hours 0.1 hours Move time 1.9 hours 1.4 hours 0.6 hours Queue time 8.2 hours 5.2 hours 1.9 hours Required: 1. For direct materials: a. Compute the price and quantity variances. b. Is the decrease in waste that was mentioned by Raul apparent from your variance calculations? c. What standard price per foot should the company use going forward to compute the materials price variance? Note: Round your answers to 1 decimal place. Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (I.e., zero variance). 2. For direct labor. a. Compute the rate and efficiency variances. b. Is the company's labor efficiency variance a useful performance measure in its lean environment? Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). 3. For variable manufacturing overhead: a. Compute the rate and efficiency variances. b. Is direct labor-hours an appropriate cost driver for variable manufacturing overhead in the company's lean environment? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). 4. Compute the following for April, May, and June: a. The throughput time per unit. b. The manufacturing cycle efficiency (MCE). Note: Round your answer to 1 decimal place. 1a. Materials price variance 1a. Materials quantity variance 1b. Is the decrease in waste apparent? 1c. New Standard price per foot 2a. Labor rate variance 2a. Labor efficiency variance 2b. Is the labor efficiency variance a useful performance measure? 3a. Variable manufacturing overhead rate variance 3a. Variable manufacturing overhead efficiency variance 3b. Is direct labor-hours an appropriate cost driver? S (102,000) F 90,000 U Yes 4a. April 4a. May 4a. June 4b. April 4b. May 4b. June Month Throughput time MCE %6 % %