P24-5B Pacific Products manufactures fishing waders. The company prepares flexible bud- gets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a pair of waders is based on the static budget volume of 14,000 pairs per month: Direct materials (3.0 sq. ft @ $2.00 per sq. ft). Direct labor (2 hours @ $9.40 per hour) $ 6.00 18.90 Manufacturing overhead: Variable (2 hours @ $0.65 per hour). Fixed (2 hours @ $2.20 per hour) Total cost per pair. Data for November of the current year include the following:

a. Actual production was 13,600 pair. $1.30 4.40 5.70 $30.60

b. Actual direct materials usage was 2.70 square feet per pair of waders at an actual cost of $2.15 per square foot.

c. Actual direct labor usage of 24,480 hours cost $235.008.

d. Total actual overhead cost was $79,000. Required 1. Compute the price and efficiency variances for direct materials and direct labor. 2. Journalize the usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the total variance, the flexible budget variance. and the production volume variance. 4. Pacific Products' management intentionally purchased superior materials for November production. How did this decision affect the other cost variances? Overall, was the deci- sion wise?