Hi Attached is the help documents that I have solved for the following question, can somebody review it for me and let me know if I have plugged in the right numbers.

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

Standard Costs -

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:

Metal tubing - 3100 meters = $9455

Leather - 1100 square meters = $7722

Padding - 1600 kilograms = $6560

Direct Labor - 1800 hours = $27270

Total Costs = $51007

Please advise further if these are favorable or unfavorable and help me explain why.

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. In week 5, we will be comparing standard costs with actual costs. I suggest you start by carefully reading the weekly briefing and focus on pages 546 through 554 before you start the application. I would like to provide some specific guidance regarding the application. When computing the price and wage variances, notice that the standard cost is per meter, or square meter, or kilogram, or hour. Therefore, you need to find the actual cost for the same amount. For example, 3,100 meters of metal tubing were used at a cost of $9,445. To find the cost of one meter divide the cost by the number of meters. $9,455/3,100 = $3.05. This represents the actual cost for one meter of metal tubing. Since 500 massage chairs were manufactured, you need to find the standard quantities needed for making those 500 chairs. For example, six meters of material is the standard quantity to make one chair. Multiply this by 500 chairs and you can see that the standard for making 500 chairs is 3,000 meters of metal tubing. Once you know the variances, you need to determine if they are favorable or unfavorable. When you have that information, you will be able to discuss the variances with the production department manager. Please do not ask how to do a computation unless you are willing to show how you did the computation. You need to try to do the work before asking for help. A template is attached that you might find useful. You are not required to use it, but it will save you some time. Attached separately as the template is in Excel. This week's assignment is related to variance analysis of actual and standard pricing. F = Favorable variance and U = Unfavorable variance. Example = travel expenses account. Favorable variance is when your travel expenses are less than the budget. Unfavorable variance is when your actual travel expenses are greater than the budget. Setting the assignment up is critical this week. Excel will be used but only as adding and subtrac The steps: 1, Material Price Variance A. Price variance (actual price - standard price) x quantity bought B. Wage rate variance (actual wage rate - standard wage rate) x actual hours C. Total price variance 2.Materia l Quantity Variance D. Quantity variance (actual quantity used in production - standard quantity used in production) x the standard price. E. Labor efficiency variance (actual hours - standard hours) x standard wage F. Total quantity variance Now follow the above and fill in the template. Good luck