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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 1. 54 pounds of lumber at $1 50 per pound 2. 1 metal kit at $170 3. 2 hours of type I labor from people who run the saws and cutting tools at a standard wage rate of $15 per hour 4 3 hours of type II labor from people who attach the metal finishes and other hardware at a standard wage rate of $12 per hour Required: Calculate the 1) price variance and 2) quantity variance for each item below: a. Lumber Price variance: (AQX AP) - (AQ X SP) Quantity Variance: (AQ x SP)-(SQXSP) b. Metal kits. Price variance (AQ X AP) (AOX SP) Quanlity Variance (AQX SP) (SOX SP) c. Type I workers. Price variance. (AH X AR) -(AHX SR) Quantity Variance (AH X SR)-(SHX SR) d. Type II workers. Price variance (AHXAR) (AHX SR) Quantity Variance (AH X SR)-(SHX SR)
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