Frame - It, Inc., produces several different styles and sizes of picture frames. The collage frame consists of 12 interconnected matted picture slots, each surrounded by a wood frame. Engineering studies indicate that each collage frame will require the following direct materials and direct labor: (Click on the icon to view the direct materials and direct labor costs.) The following activity regarding direct labor and wood trim occurred during March: (Click on the icon to view the March data.) ..... Read the requirements. Requirement 1. Calculate the standard direct materials cost and standard direct labor cost for each collage frame. (Enter your answers to the nearest cent, $X.XX.) Standard Cost Materials and Labor: per Frame Wood trim for frame borders 6.08 Mattes for individual pictures 0.68 Sheet glass top... 16.5 Pressboard frame backing 2.1 25.36 Direct material cost per unit Direct labor 7.6 Requirement 2. Calculate the wood trim direct materials price and quantity variances for the month of March. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.) First determine the formula for the price variance, then compute the price variance for the wood trim direct materials. Standard price Actual price = Actual quantity used 802000 DM price variance 40100 U 0.38 0.43 Determine the formula for the quantity variance, then compute the quantity variance for the wood trim direct materials. Standard price DM quantity variance = Requirement 3. Calculate the direct labor rate and efficiency variances for the month of March. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. x DL rate variance x ) Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. x DL efficiency variance = Choose from any list or enter any number in the input fields and then continue to the next question. Materials and Labor: Quantity of Input Price of Input Wood trim for frame borders ..... 16 feet 17 mattes Mattes for individual pictures ... Sheet glass top.... Pressboard frame backing $0.38 per foot $0.04 per matte $5.50 per square foot $0.21 per square foot $19 per hour 3 square feet 10 square feet Number of frames produced.....50,000 frames Wood trim purchased 800,000 feet at $0.43 per foot Wood trim used 802,000 feet Direct labor hours 20,500 hours Direct labor cost. $384,375 (resulting in an average wage rate of 18.75/hr*) Direct labor .. 0.4 hours $384,375 = 20,500 hours = $18.75/hr
