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Part 2 (30 points) The accounting manager reviewed the cost reports and noted the following actual costs for a particular order that consisted of 20
Part 2 (30 points) The accounting manager reviewed the cost reports and noted the following actual costs for a particular order that consisted of 20 pergolas: *1,150 pounds of lumber were purchased at a total cost of $2,280. *Twenty-two (22) metal kits were assembled at a total cost of $3,840. *Type I employees worked 35 hours on this project at a total cost of $585. *Type Il finishing employees worked 57 hours at a total cost of $690. The standard costs to make each finished pergola are: 54 pounds of tumber at $1.50 per pound 1 metal kit at $170 2 hours of type I labor from people who run the saws and cutting tools at a standard wage rate of $15 per hour 3 hours of type Il labor from people who attach the metal finishes and other hardware at a standard wage rate of $12 per hour. O Required: Calculate the 1) price variance and 2) quantity variance for each item below: a. Lumber Price variance: (AQ XAP) -(AQ X SP) Quantity Variance: (AQ x SP)-(SQ X SP) b. Metal kits. Price variance: (AQ X AP) -(AQ X SP) Quantity Variance: (AQ x SP)-(SQ X SP) c. Type I workers. Price variance: (AH XAR) -(AHX SR) Quantity Variance: (AHX SR)- (SH X SR) d. Type Il workers. Price variance: (AH X AR) -(AH X SR) Quantity Variance: (AHX SR)-(SH X SR)
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