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Bengro Company manufactures bookcases. The company uses standards to control its costs. The labor standards that have been set for one bookcase are as follows: + Standard Hours 2.5 Standard Rate per Hour $14.00 Standard Cost $35.00 During August, 13,500 hours of direct labor time were needed to make 5,000 bookcases. The direct labor cost totaled $199,800 for the month. Required: 1. What is the labor rate variance and the labor efficiency variance? Actual Hours, at Actual Price Actual Hours, at Standard Price (AH AR) Labor rate variance, (AH SR) Standard Hours Allowed for Output, at Standard Price (SH SR) Labor efficiency variance, Spending Variance, 2. Interpret what the variance are telling us. How should we respond to the variances? Katen Industries manufactures gardening equipment. One of the company's products, a garden rake, requires a special alloy. During the quarter ending June 30, the company manufactured 55,000 rakes, purchasing and using 225,000 pounds of the special alloy. The alloy cost the company $540,000. According to the standard cost card, each rake should require 4 pounds of steel, at a cost of $2.50 per pound. Required: 1. What is the materials price variance and the materials quantity variance? Actual Quantity of Input, at Actual Price (AQ AP) Actual Quantity of Input, at Standard Price (AQ SP) Standard Quantity Allowed for Output, at Standard Price (SQ SP) Materials price variance, Materials quantity variance, Spending Variance, 2. Interpret what the variance are telling us. How should we respond to the variances

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