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 4,400 units of the product. Standard costs and actual costs for materials and labor are given below:

STANDARD COSTS
Raw materials
Framing: 11 square feet at $0.30 per square foot	$	3.30
Filler: 14 pounds at $0.25 per pound		3.50
Standard materials cost per unit	$	6.80
Direct labor
Cutting dept.: 1.0 hour at $15.00 per hour	$	15.00
Final dept.: 0.60 hour at $16.00 per hour		9.60
Standard direct labor cost per unit	$	24.60

ACTUAL COSTS
Raw materials
Framing: 46,000 square feet at $0.31 per square foot	$	14,260.00
Filler: 62,200 pounds at $0.23 per pound		14,306.00
Total actual materials cost	$	28,566.00
Direct labor
Cutting dept.: 4,300 hours at $15.30 per hour	$	65,790.00
Final dept.: 2,900 hours at $15.80 per hour		45,820.00
Total actual direct labor cost	$	111,610.00

Required:

1. Prepare a comparison of the actual cost of materials with the standard cost of materials for the 4,400 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 4,400 units of product. Then prepare an analysis of the labor variances.

Analyze: What total variance in labor was reported by the final department?

Prepare a comparison of the actual cost of materials with the standard cost of materials for the 4,400 units of product. Then prepare an analysis of the materials variances.

ZACK MANUFACTURING COMPANY
Analysis of Materials Variances
For Month of March 2019
	Costs		Variances
Cost Elements	Standard	Actual	Quantity		Price
Framing
Standard
Actual
Quantity variance
Price variance
Filler
Standard
Actual
Quantity variance
Price variance
Totals	$0	$0	$0		$0

Prepare a comparison of the actual cost of labor with the standard cost of labor for the 4,400 units of product. Then prepare an analysis of the labor variances.

ZACK MANUFACTURING COMPANY
Analysis of Labor Variances
For Month of March 2019
	Costs		Variances
Cost Elements	Standard	Actual	Quantity		Price
Cutting Department
Standard
Actual
Time variance
Rate variance
Final Department
Standard
Actual
Time variance
Price variance
Totals	$0	$0	$0		$0