A$.$ Rene is working with the operations manager to determine what the standard labor cost is for a spice

chest. He has watched the process from start to finish and taken detailed notes on what each employee

does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the

employee $1$ hour for each chest. The next employee takes the wood and cuts it to the proper size. This

takes $30$ minutes. The next employee assembles and sands the chest. Assembly takes $2$ hours. The chest

then goes to the finishing department. It takes $1\mathrm{.}5$ hours to finish the chest. All employees are cross$-$

trained so they are all paid the same amount per hour, $$17\mathrm{.}50.$

P$1.$ What are the standard hours per chest?

P$2.$ What is the standard cost per chest for labor?

B$.$ Use the following standard cost card for one carton of ice cream to answer the following questions:

STANDARD COST CARD

Product: Carton of Ice Cream

All materials used were bought during the current period. Actual direct costs incurred to make $50$ cartons

of ice cream:

$275$ quarts of cream at $$1\mathrm{.}05$ per quart

$29\mathrm{.}7$ quarts of sugar at $$2\mathrm{.}10$ per quart

$165$ minutes of labor at $$37$ per hour

P$3.$ Compute the material variances $($overall$,$ price, and quantity$).$

P$4.$ Compute the labor variances $($overall$,$ price, and quantity$).$