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i need this question's answer soon [10 marks] Hedgehog Wood Studio is a Canadian business that specializes in designing and manufacturing wooden chopsticks and sushi
i need this question's answer soon
[10 marks] Hedgehog Wood Studio is a Canadian business that specializes in designing and manufacturing wooden chopsticks and sushi boards. The company uses primarily hardwoods from both locally harvested urban logging and sustainably sourced lumber suppliers. The company has a standard costing system to help control costs and has established the following standards related to the new sushi boards: Direct materials: 0.3 square meters of lumber per board at $120 per square meter Direct labour: 1.5 hours per board at $25 per hour Variable overhead: 0.75 hours per board at $12 per hour Fixed overhead: 1.2 hours per board at $5.75 per hour During February 2021, the company produced 1,850 sushi boards. Product data for February are as follows: Direct materials 560 square meters of lumber were purchased at a cost of $135 per square meter. All materials were used during the month. Direct labour: 2,650 direct labour-hours were worked at a cost of $71,550. Variable overhead: $16,800 Fixed overhead: $12,765 Fixed overhead: 12 hours per board at $5.75 per hour During February 2021, the company produced 1,850 sushi boards. Product data for February are as follows: Direct materials 560 square meters of lumber were purchased at a cost of $135 per square meter. All materials were used during the month. Direct labour: 2,650 direct labour-hours were worked at a cost of $71,550. Variable overhead: $16,800 Fixed overhead: $12,765 Instructions (a) Compute the direct materials price and quantity variances. (4 marks) (b) Compute the direct labour rate and efficiency variances. (4 marks) (c) Prepare a brief explanation of the possible causes of the material price and quantity variances. (2 marks)Step by Step Solution
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