Sweet Memories, Inc., produces several different styles and sizes of picture frames. The collage frame consists of 12 interconnected matted picture slots, each surrounded by a wood frame. Engineering studies indicate that each collage frame will require the following direct materials and direct labor: a (Click on the icon to view the direct materials and direct labor costs.) The following activity regarding direct labor and wood trim occurred during March: a (Click on the icon to view the March data.) Read the @uirements. Requirement 1. Calculate the standard direct materials cost and standard direct labor cost for each collage frame. (Enter your answers to the nearest cent, $X.XX.) Materials and Labor: Wood trim for frame borders ..... Mattes for individual pictures ..... Sheet glass top .............. Pressboard frame backing ....... Direct material cost per unit ...... Direct labor ................. Standard Cost per Frame Data Table Data Table Materials and Labor: Quantity Of Input Price 0\""911t Number of frames produced . . . . 5,000 frames Wood trim for frame borders . . . . 21 feet $0.39 per foot Wood trim purchased ......... 105,000 feet at $0.47 per foot Manes for individual pictures 17 mattes $0.03 per matte Wood trim used ............ 110,000 feet Sheet glass top 7 square feet $3.00 per square foot Direct labor hours . . . 2,300 hours Pressboard frame backing ...... 5 square feet $0.30 per square foot Direct labor cost ...... $45,195 (resulting in an average wage rate of 19.65/hr\") Direct labor ................. 0.45 hours $20 per hour * $45,195 + 2,300 hours = $19.65/hr Requirements 1. Calculate the standard direct materials cost and standard direct labor cost for each Sheet glass top .............. collage frame. Pressboard frame backing ...... 2. Calculate the wood trim direct materials price and quantity variances for the month of March. Direct material 005' per unit ------ 3. Calculate the direct labor rate and efciency variances for the month of March. Requirement 2. Calculate the wood trim direct materials price and quantity variances for the month of March. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials.) First determine the formula for the price variance, then compute the price variance for the wood trim direct materials. DM price variance Determine the formula for the quantity variance, then compute the quantity variance for the wood trim direct materials. = DM quantity variance Requirement 3. Calculate the direct labor rate and efficiency variances for the month of March. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. = DL rate variance Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. = DL efficiency variance
