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Sperialty furniture makes custom chairs usine a standard costing system. The company expects that a typical chair should require 6 hours of tabor wit! a
Sperialty furniture makes custom chairs usine a standard costing system. The company expects that a typical chair should require hours of tabor wit!
a standard wage rate of $ per hour. Additionally, the typical chair uses square fcet of wood with a stondard price of $ per square foot.
The company does not store inventory, and buys wood for production as orders are received.
In the current period, Specialty Furniture produced chairs using labor hours and $ square feet of wood. The company bought wood for $
per square foot and used the entire quantity and incurred labor costs of $ pen hour.
riEquired:
Calculate the price and efficiency variances for: a labor and b materials. Clearly mark each variance as favorable F or untavorable U
Provide a plausible explanation for the combination of variances that Specialty furniture experienced. Detail chart
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