PR 10-47 (Algo) Comprehenslve Problem on Varlance Analysls (LO 10-1, 10-3, 10-6) [The following information applies to the questions displayed below.] Springsteen Company manufactures gultars. The company uses a standard, job-order cost-accounting system in two production departments. In the Construction Department, the wooden gultars are bullt by highly skilled craftsmen and coated with several layers of lacquer. Then the units are transferred to the Finishing Department, where the bridge of the gultar is attached and the strings are installed. The gultars also are tuned and inspected In the Finishing Department. The dlagram below depicts the production process. Each finished gultar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the gultars has a standard price of $12 per pound. The other parts needed to complete each gultar, such as the bridge and strings, cost \$15 per gultar. The labor standards for Springsteen's two production departments are as follows: Construction Department: 6 hours of direct labor at $20 per hour Finlshing Department: 3 hours of direct labor at $15 per hour The following pertalns to the month of July. 1. There were no beginning or ending work-In-process Inventories in elther production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 572 gultars, and 372 gultars were sold on account for $400 each. 4. The company purchased 6,900 pounds of veneered wood at a price of $1250 per pound. 5. Actual usage of veneered wood was 5,400 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 672 gultars were purchased at a cost of $10,080. 7. The Construction Department used 3,300 direct-labor hours. The total direct-labor cost in the Construction Department was $62,700. 8. The Finishing Department used 1,786 direct-labor hours. The total direct-labor cost In that department was $28,576. 9. There were no direct-materlal varlances in the Finishing Department. PR 10.47 (Algo) Part 2: Compute the direct-materlal and direct-labor varlances 2 Complete the table below that compute the July direct-materlal and direct-labor varlances in the Construction Department and the July direct-labor varlances in the Finishing Department. (Refer to Exhiblt 10-2, and for guldance.) Complete this question by entering your answers in the tabs below. Complete the table below that compute the July direct material price and quantity variance in the Construction Department. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance), Round "Actual Price" and "Standard Price" to 2 decimal places. Complete the table below that compute the July direct material purchase price variance in the Construction Department. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Price" and "Standard Price" to 2 decimal places. Complete the table below that compute the July direct-labor rate and efficiency variances in the Construction Department. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate" to 2 decimal places. Complete the table below that compute the July direct-labor rate and efficiency variances in the Finishing Department. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance), Round "Actual Rate" and "Standard Rate" to 2 decimal places