Hi All,

I need somebody to review the my assignment answers, the assignment question is below and attached is the excel file. Please let me know if the amounts are correctly plugged in and whether they are favorable or unfavorable.

Spine Line is a manufacturer of high quality products designed to help support healthy spines. Their newest product offering is a massage chart. Below is the standard cost structure for the chair:

Standard Cost Sheet: Massage Chair

Metal tubing - 6 meters @ $3 - $18.00

Leather - 2 square meters @$7 - $14.00

Padding - 3 kilograms @$4 - $12.00

Direct labor - 4 hours @$15 - $60.00

Total Standard cost $104.00

This month, Spine Line manufactured 500 massage chairs. The following costs were incurred:

Actual Costs incurred for the month : Massage Chair

Metal tubing 3100 meter - $9,455

Leather 1,100 square meters - $7722

Padding 1,600 kilograms - $6560

Direct Labor 1800 hours - $27270

Total cost $51,007

Your prompt reply is appreciated because I need to submit the assignment.,

Week 5 Template a) Price variance = (actual price - standard price) times quantity bought Metal tubing Leather Padding Actual Standard Quantity Price Favorable or price price bought variance Unfavorable 3.05 3 3100 155 Unfavorable 7.02 7 1100 22 Unfavorable 4.1 4 1600 160 Unfavorable b) Wage rate variance = (Actual wage rate - standard wage rate) times actual hours Direct labor c)Total price variance Actual Standard wage rate wage rate 15.15 15 29.32 29 Actual Wage rate Favorable or hours variance Unfavorable 1800 270 Unfavorable 7600 2432 Unfavorable d) Quantity variance = (actual quantity used in production - standard quantity used in production) times the standard price Metal tubing Leather Padding Actual Standard Standard Quantity Favorable or Quantity Quantity Price variance Unfavorable 3100 3000 3 300 Unfavorable 1100 1000 7 700 Unfavorable 1600 1500 4 400 Unfavorable e) Labor efficiency variance = (actual hours - standard hours) times standard wage Direct labor f) Total quantity variance TOTAL VARIANCES Metal tubing Leather Padding Actual Standard Standard Efficiency Favorable or hours hours wage variance Unfavorable 1800 2000 15 -3000 Favorable -1600 Favorable 455 722 560 455 722 560 Direct labor TOTAL (2,730) (993) -2730 (993) you input both the actual and standard prices for each of the three products The price variance is the difference between the actual and standard prices times the Quantity bought. Example - metal tubing - if actaul price is $3.05 and the standard price is $3 the price difference is .05 or 5 cents. Multiple the 5 In the last column put a ' U' if the variance is nufavorable or a " F ' if favorable follow the same directions as above actual quantity comes from above - cells D7, D8 and D9 you input standard quantity for the three products quantity variance is the actual quantity less the standard quantity times the standard price for each product. Example: Metal tubing - If the standard quatity is 3000, the difference is 100, 3100 less 3000. Multiple the 100 times the $3 sta In the last column insert a " U " if the variance is Unfavorable or " F " if favorable. follow the same instructions as above. Net of Line E7 and Line E24 Net of Line E8 and Line E 25 Net of Line E9 and Line E26 Net of Line E14 and Line E31 Net of Lines E 37 through E 40 s .05 or 5 cents. Multiple the 5 cents by 3100 = $155 price variance. Do the same for all three products tiple the 100 times the $3 standard price = quantity variance of 300. Do the same for all three products