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Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood

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Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $12 per pound. The other parts needed to complete each guitar, such as the bridge and strings. cost $15 per guitar, The labor standards for Springsteen's two production departments are as follows: Construction Department: 6 hours of direct labor at $20 per hour Finishing Department 3 hours of direct labor at $15 per hour The following pertains to the month of July. 2. There were no beginning or ending work-in-process inventories in either production department. 2 There was no beginning finished-goods inventory. 3. Actual production was 564 guitars, and 364 gurtars were sold on occount for $400 each. 4. The company purchased 6.800 pounds of veneered wood at a price of $12.50 per pound. 5. Actual usage of veneered wood was 5,300 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 664 guitars were purchased at a cost of $9,960. 7. The Construction Department used 3,250 direct-abor hours. The total direct-labor cost in the Construction Deportment was $61,750. 8. The Finishing Department used 1,762 direct-labor hours, The total direct-labor cost in that department was $28,192 Q. There were no direct-material variances in the Finishing Department. 10-47 (Algo) Part 3: Complete the following cost varlance report... Complete the following cost variance report for July. Springsteen Company investigates all variances greater than $5,000 or 5% se Exhibit 105 ) ote: Indicate the effect of each vorlance by selecting "Fovorable" or "Unfovorable". Select "None" ond enter "O" for no effect fle.., ro variance). Round "Percentage of Stondard Cont" to 2 decimal ploces

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