Calculate the material and labor variances for table production based on the provided standard and actual costs.

Here are the calculations for the material and labor variances for table production. Data Extraction: Standard Cost per Table: Iroko: 12 kg @ N5.60/kg = N67.20 Polish: 0.5 liter @ N6.00/liter = N3.00 Labor: 16 hours @ N12.00/hour = N192.00 Actual Production and Costs (August 2006): Tables produced: 1,240 units Iroko: 900 kg purchased and used for N22,500 Polish: 500 liters purchased and used for N2,000 Labor: 10,400 hours worked for N72,500 --- 1. Material Price Variance (MPV) Formula: MPV = (Standard\ Price - Actual\ Price) × Actual\ Quantity\ Purchased a) Iroko Material Price Variance Step 1: Calculate Actual Price (AP) for Iroko. AP (Iroko) = Actual CostActual Quantity = N22,500900 kg = N25.00/kg Step 2: Calculate Iroko Material Price Variance. MPV (Iroko) = (N5.60 - N25.00) × 900 kg = (-N19.40) × 900 kg = -N17,460 The variance is adverse because the actual price was higher than the standard price. Iroko Material Price Variance: N17,460 Adverse b) Polish Material Price Variance Step 1: Calculate Actual Price (AP) for Polish. AP (Polish) = Actual CostActual Quantity = N2,000500 liters = N4.00/liter Step 2: Calculate Polish Material Price Variance. MPV (Polish) = (N6.00 - N4.00) × 500 liters = (N2.00) × 500 liters = N1,000 The variance is favorable because the actual price was lower than the standard price. Polish Material Price Variance: N1,000 Favorable --- 2. Material Usage Variance (MUV) Formula: MUV = (Standard\ Quantity - Actual\ Quantity\ Used) × Standard\ Price a) Iroko Material Usage Variance Step 1: Calculate Standard Quantity (SQ) for actual production. SQ (Iroko) = 12 kg/table × 1,240 tables = 14,880 kg Step 2: Calculate Iroko Material Usage Variance. MUV (Iroko) = (14,880 kg - 900 kg) × N5.60/kg = (13,980 kg) × N5.60/kg = N78,288 The variance is favorable because less material was used than the standard quantity for the actual production. Iroko Material Usage Variance: N78,288 Favorable b) Polish Material Usage Variance Step 1: Calculate Standard Quantity (SQ) for actual production. SQ (Polish) = 0.5 liter/table × 1,240 tables = 620 liters Step 2: Calculate Polish Material Usage Variance. MUV (Polish) = (620 liters - 500 liters) × N6.00/liter = (120 liters) × N6.00/liter = N720 The variance is favorable because less material was used than the standard quantity for the actual production. Polish Material Usage Variance: N720 Favorable --- 3. Labor Rate Variance (LRV) Formula: LRV = (Standard\ Rate - Actual\ Rate) × Actual\ Hours\ Worked Step 1: Calculate Actual Rate (AR). AR = Actual Labor CostActual Hours Worked = N72,50010,400 hours ≈ N6.97115/hour Step 2: Calculate Labor Rate Variance. LRV = (N12.00 - N6.97115) × 10,400 hours = (N5.02885) × 10,400 hours = N52,300 The variance is favorable because the actual labor rate was lower than the standard rate. Labor Rate Variance: N52,300 Favorable --- 4. Labor Efficiency Variance (LEV) Formula: LEV = (Standard\ Hours - Actual\ Hours\ Worked) × Standard\ Rate Step 1: Calculate Standard Hours (SH) for actual production. SH = 16 hours/table × 1,240 tables = 19,840 hours Step 2: Calculate Labor Efficiency Variance. LEV = (19,840 hours - 10,400 hours) × N12.00/hour = (9,440 hours) × N12.00/hour = N113,280 The variance is favorable because fewer hours were worked than the standard hours for the actual production. *Labor Efficiency Variance: N113,280