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  3. 3. riggins, inc. manufactures windshield wipers. t

3. Riggins, Inc. manufactures windshield wipers. The company uses a standard cost system and sells...

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Accounting

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3. Riggins, Inc. manufactures windshield wipers. The company uses a standard cost system and sells each windshield wiper set for $12. At the start of monthly production, Riggins estimated 7,500 sets would be produced in March. Riggins has established the following material and labor standards to produce one set of windshield wipers Direct materials Direct labor Standard Quantity 2.75 pounds 0.9 hours Standard Price $2 per pound $12 per hour During March 2017, the following activity was recorded by the company relating to the production of windshield wipers: NOTE: When calculating the standard quantity (SQ) of materials, base it on the number of units produced (8,000) NOT estimated (7,500) 1. The company produced 8,000 units during the month 2. A total of 26,000 pounds of materials were purchased at a cost of $65,000 3. A total of 26,000 pounds of materials were used in production 4. 7,000 hours of labor were incurred during the month at a total wage cost of $66,500 Instructions: Calculate the following variances for March for Riggins, Inc. (a) Total materials variance (b) Materials price variance (c) Materials quantity variance (d) Total labor variance (e) Labor price variance (f) Labor quantity variance

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