19 Feb Catch a Wave Company manufactures surfboards. Its
Catch a Wave Company manufactures surfboards. Its standard cost information follows:Standard Standard Price Standard Unit Quantity (Rate) CostFiberglass 15 sq. ft. $5 per sq. ft. $75.00Direct labor 10 hrs $15 per hour 150.00Variable manufacturing overhead $6 per direct labor hour 60.00Fixed manufacturing overhead $8 per direct labor hour 80.00The company expected to require 2,500 hours of direct labor.Catch a Wave has the following actual results for the month of June:Number of units produced and sold 260Number of square feet of fiberglass used 4,100Cost of fiberglass purchased (5,000 square feet) $24,500Number of labor hours worked 2,550Direct labor cost $39,525Variable overhead cost $14,790Fixed overhead cost $20,500Required:a) Compute the eight variances that were discussed in class.b) Explain what these variances may be indicating.
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