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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 tabor at $20 per hour Finshing Department 3 hours of direct labor at $15 per hour The following pertains to the month of July. 1. There were no beginning or ending work-in-process inventorles in either production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 564 guitars, and 364 guitars were sold on account for $400 each. 4. The company purchased 6.800 pounds of veneered wood at a price of $12.50 per pound. 5. Actual usoge of veneered wood was 5,300 pounds of the wood purchased during fuly. 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-labor hours. The total direct-labor cost in the Construction Department 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. R 10-47 (Algo) Part 2: Compute the direct-materlal and direct-labor varlances L Complete the table below that compute the July direct-material and direct-labor variances in the Construction Department and the uly direct-abor variances in the Finishing Department (Refer to Exhibit 10-2, Exhibit 10-3 and Exhibit 10-4 for guidance) Complete this question by entering your answers in the tabs below. Complete the table below that compute the July direct material purchase price variance in the Construction Department. Notes Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter " " for no eff ect (Le, tero variance). Round "Actual Price" and "Standard Price" to 2 decimal places

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