Accounting for Decision Making and Control 6th Edition by Jerold Zimmerman

Exercise 22

Healing Touch manufactures massage chairs with the following standard cost structure:

During the month 500 chairs are manufactured and the following costs incurred:

Required:
a. Calculate all materials and labor variances (including price, quantity, wage rate, and labor efficiency variances).
b. Write a short report summarizing and analyzing the manufacturing operations for the month.