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Cardinal Furniture Standards and Variances
Cardinal Furniture Company uses a standard cost system. One of the company's most popular products
is a cherrywood desk. The per-unit standard costs of the desk, assuming a "normal" volume of 2,000
desks per month, are as follows:
Direct materials, 100 board-feet of wood at $1.50 per foot								$ 150.00
Direct labor, 4 hours at $10 per hour								40.00
Manufacturing overhead (applied at $22 per desk)
Fixed ($20,000 divided by 2,000 units of normal production)							10.00
Variable							8.00	18.00
Total standard unit cost								$ 208.00
During May, 1,800 desks were scheduled and producted and incurred the following actual costs:
Direct materials, 105 feet at $1.40 per foot						$ 147.00
Direct labor, 4 1/2 hours at $9 per hour						40.50
Manufacturing overhead, $34,200 divided by 1,800 units						19.00
Total actual cost						$ 206.50
Required:
Please compute the following cost variances for the month of May:
Direct materials price variance
Direct materials quantity variance
Direct labor rate variance
Direct labor efficiency variance
Variable overhead rate variance
Variable overhead efficiency variance.

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