Question: Healing touch manufactures massage chairs with the following standard cost structure:

Metal tubing 6 meters @ $3 $18.00

Leather 2 square meters @ $7 14.00

Padding 3 kilograms @ $4 12.00

Direct Labor 4 hrs @ $15 60.00

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

Metal Tubing 3100 meters $9455

Leather 1100 square meters 7722

Padding 1600 kilograms 6560

Direct labor 1800 hours 27270

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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.