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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 6 hours of tabor wit!
a standard wage rate of $20 per hour. Additionally, the typical chair uses 32 square fcet of wood with a stondard price of $13 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 105 chairs using 650 labor hours and $,000 square feet of wood. The company bought wood for $12
per square foot (and used the entire quantity) and incurred labor costs of $21 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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