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Comfort First produces massage chairs. The manufacturing division of Comfort First is classified as a cost center. For performance evaluation of the manufacturing division, Comfort First has specified the following standards for one chair: Metal Tubing 16 ft per chair @ $0.6/ft Leather 5 sq ft per chair @ $1.5/sq ft Padding 7 lbs per chair @ $2/1b Direct Labor 4 hrs per chair @ $16/hr OH Rate $6/Direct Labor hour For a given month, the manufacturing division produced 600 chairs and incurred the following costs: Metal Tubing Leather $ 5,600 $ 3,800 $ 7,350 $ 35,600 Padding Direct Labor OH Rate $ 12,500 (a) For each cost above, compute the variance and indicate if the variance is favorable or unfavorable. Analyze overall variance and indicate if it is favorable or unfavorable. Compute the actual cost per chair and compare to standard cost per chair. (0.5 points) (b) In analyzing the performance of the manufacturing division, Comfort First assumes all costs to be variable. However, the manager of the manufacturing division knows that, while material and labor costs are variable, OH costs for the division are fixed. For the month above, analyze how the performance of the manufacturing division would have looked if the manufacturing division produced 650 chairs instead of 600. Given the manager has decision rights over the output quantity, would the manager prefer to produce 650 chairs? (0.5 points) Comfort First produces massage chairs. The manufacturing division of Comfort First is classified as a cost center. For performance evaluation of the manufacturing division, Comfort First has specified the following standards for one chair: Metal Tubing 16 ft per chair @ $0.6/ft Leather 5 sq ft per chair @ $1.5/sq ft Padding 7 lbs per chair @ $2/1b Direct Labor 4 hrs per chair @ $16/hr OH Rate $6/Direct Labor hour For a given month, the manufacturing division produced 600 chairs and incurred the following costs: Metal Tubing Leather $ 5,600 $ 3,800 $ 7,350 $ 35,600 Padding Direct Labor OH Rate $ 12,500 (a) For each cost above, compute the variance and indicate if the variance is favorable or unfavorable. Analyze overall variance and indicate if it is favorable or unfavorable. Compute the actual cost per chair and compare to standard cost per chair. (0.5 points) (b) In analyzing the performance of the manufacturing division, Comfort First assumes all costs to be variable. However, the manager of the manufacturing division knows that, while material and labor costs are variable, OH costs for the division are fixed. For the month above, analyze how the performance of the manufacturing division would have looked if the manufacturing division produced 650 chairs instead of 600. Given the manager has decision rights over the output quantity, would the manager prefer to produce 650 chairs? (0.5 points)