The company where Robert works produces skateboards locally but sells them globally for $60 each. Robert is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them:

 

	Standard Quantity per unit	Standard Price
Wood	3.00	feet	$3.00	per foot
Wheels	4.00	wheels	$0.50	per wheel
Direct Labor	0.30	hours	$14.00	per hour

 

Actual results:

• Quantity of wood purchased, 265,200 feet; quantity of wood used, 259,200 feet.
• Quantity of wheels purchased, 345,430 wheels; quantity of wheels used, 326,430 wheels.
• Actual cost of the wood, $3.20 per foot.
• Actual cost of the wheels $0.55 per wheel.
• Quantity of DL hours used, 25,920 hours; actual cost of DL hours, $15.80 per hour.
• Actual units produced, 81,000 skateboards.

 

(a) Complete variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance.

 

	Price Variance	Efficiency Variance
DM-Wood
DM-Wheels
DL