P 129: Healing Touch

Healing Touch manufactures massage chairs with the following standard cost structure:

Standard Cost Sheet: Massage Chair

Metal tubing	6 m @ $3	$ 18.00
Leather	2 sq m @ $7	14.00
Padding	3 kg @ $4	12.00
Direct labor	4 hr @ $15	60.00
Total standard cost		$104.00

During the month, 500 chairs are manufactured and the following costs incurred:

Actual Costs Incurred for the Month: Massage Chair

Metal tubing	3,100 m	$ 9,455
Leather	1,100 sq m	7,722
Padding	1,600 kg	6,560
Direct labor	1,800 hr	27,270
Total cost		$51,007

Required:

1. Calculate all materials and labor variances (including price, quantity, wage rate, and labor efficiency variances).

2. Write a short report summarizing and analyzing the manufacturing operations for the month.