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Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process. The veneered wood used in the guitars has a standard price of $12 per pound. The other parts needed to complete each guitar, such as the bridge and strings, cost \$15 per guitar. The labor standards for Springsteen's two production departments are as follows: Construction Department 6 hours of direct labor at $20 per hour Finishing Department: 3 hours of direct labor at $15 per hour The following pertains to the month of July. 1. There were no beginning or ending work-in-process inventories in elther production department. 2. There was no beginning finished-goods inventory. 3. Actual production was 536 guitars, and 336 guitars were sold on account for $400 each. 4. The company purchased 6,450 pounds of veneered wood at o price of $12.50 per pound. 5 . Actual usage of veneered wood was 4,950 pounds of the wood purchased during July. 6. Enough parts (bridges and strings) to finish 636 guitars were purchased at a cost of $9,540. 7. The Construction Deportment used 3,075 direct-labor hours. The total direct-labof cost in the Construction Department was $58,425. 8. The Finishing Department used 1,678 direct-labor hours. The total direct-labor cost in that department was $26,848. 9. There were no direct-material variances in the Finishing Department. PR 10-47 (Algo) Part 3: Complete the following cost variance report... 3. Complete the following cost variance report for July Springsteen Company investigates all variances greater than $5,000 or 5%. (Use Exh bit10-5) Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e

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