Zack Manufacturing Company makes a product that is processed through two departments: cutting and final. All materials are added in the first department. During the month of March 2019, the company made 4,900 units of the product. Standard costs and actual costs for materials and labor are given below: STANDARD COSTS Raw materials Framing: 9 square feet at $0.20 per square foot Filler: 16 pounds at $0.20 per pound Standard materials cost per unit Direct labor Cutting dept.: 1.8 hour at $13.00 per hour Final dept. : 0.80 hour at $24.40 per hour Standard direct labor cost per unit $ 1.80 3.20 $ 5.00 $23.40 19.52 $42.92 ACTUAL COSTS Raw materials Framing: 41,900 square feet at $0.21 per square foot Filler: 79,200 pounds at $0.18 per pound Total actual materials cost Direct labor Cutting dept.: 8,600 hours at $13.30 per hour Final dept.: 4,310 hours at $24.20 per hour Total actual direct labor cost $ 8,799.00 14,256.00 $ 23,055.00 $114,380.00 104,302.00 $218,682.00 Required: 1. Prepare a comparison of the actual cost of materials with the standard cost of materials for the 4,900 units of product. Then prepare an analysis of the materials variances. 2. Prepare a comparison of the actual cost of labor with the standard cost of labor for the 4,900 units of product. Then prepare an analysis of the labor variances. Analyze: What total variance in labor was reported by the final department? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Prepare a comparison of the actual cost of materials with the standard cost of materials for the 4,900 units of product. Then prepare an analysis of the materials variances. ZACK MANUFACTURING COMPANY Analysis of Materials Variances For Month of March 2019 Costs Standard Actual Quantity Variances Price Cost Elements Framing Standard Actual Quantity variance Price variance Filler Standard Actual Quantity variance Price variance Totals FA 0 $ 0 $ 0 $ 0 Required Required 2 > Required 1 Required 2 Analyze Prepare a comparison of the actual cost of labor with the standard cost of labor for the 4,900 units of product. Then prepare an analysis of the labor variances. ZACK MANUFACTURING COMPANY Analysis of Labor Variances For Month of March 2019 Costs Standard Actual Quantity Variances Cost Elements Price Cutting Department Standard Actual Time variance Rate variance Final Department Standard Actual Time variance Price variance Totals 0 $ 0 $ 0 $ 0 Analyze: What total variance in labor was reported by the final department? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze What total variance in labor was reported by the final department? (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) labor variance
