Question

Body Comfort Co. is a manufacturer of high-quality products designed to help support healthy backs and spines. Their newest product offering is a massage chair. Below is the standard cost structure for the chair: Standard Cost Sheet: Massage Chair Metal tubing 6 meters @ $3.00 $18.00 Leather 2 square meters @ $7.00 $14.00 Padding 3 kilograms @$3.90 $11.70 Direct labor 4 hours @ $15 $60.00 Total standard cost $103.70 This month, Body Comfort Co. manufactured 500 massage chairs. The following costs were incurred: Actual Costs Incurred for the Month: Massage Chair Metal tubing 3,000 meters $9,455 Leather 1,050 square meters $7,722 Padding 1,600 kilograms 56,560 Direct Labor 1.750 hours $27,270 Total cost $51,007 Adapted from: Zimmerman, J.L. (2014). Accounting for decision making and control (8th ed.). New York NY: McGraw-Hill, "Healing Touch", p. 565. Suppose you are the senior controller for Body Comfort Co. and you plan to perform a variance analysis of the massage chairs manufactured to determine if the standards are being met. Once you have completed the analysis, you plan to show it to the production department manager and ask for an explanation of any variances that you believe should be examined.

Answer 1

1050 Given Total no of chairs manufactured aug 500 Actual cost incurred for manufacturing per chair Metal 9455 XEME - $19 til prist) rubing 3000 leather 7722 x2 sqnt = $4607 m iski! padding 6560 * 3 K95 $12. Direet 24270 tier messo a $6203 tas bumi Actual cost incurred for manufacturing Quel chair I 108.3 230) bro to ed cost variance 108.3.- 103.70 $406 1600 ouY เอ50 1 labour variance of stand house to betaken - 198 و على الزر (۷) و بار 1111 1750 - zao 2000 -175 0 2503 favourable a Icariance labour cost 6203 - 60 Ca.3) on favourable Material cost loosiance a 9000 - 9455 = (455) unfaron (anaterial tubing) Pleather cost roziance (1050x7) - 772&(378) unfavo le) Pading cost voniance = (1600 x3.9)- 6560 = (320) Unge SS Scanthasage bociana = (500x2 - 1850 a (sol mtr eintakao 455) unfavourable unfavourable Tea they | = (320) uglavnom 794