0. Variance Analysis for Direct Materials, Direct Labor, Variable Overhead, and Fixed Overhead. Niota overhead spending dhe possible explanation for this variance. VEC produces heavy duty work benches made of a specialized metal material. The master budget shows the following standards information and indicates the company expected to produce and sell 4,000 units for the month of May. Direct materials Direct labor 60 pounds per unit at $3 per pound 8 hours per unit at $14 per hour Variable manufacturing overhead 8 direct labor hours per unit at $6 Niota LLC actually produced and sold 4,400 units for the month. During the month, the company purchased 300,000 pounds of material for $960,000 and used 286,000 pounds in production. A total of 30,800 labor hours were worked during the month at a cost of $462,000. Variable overhead costs totaled $195,000 for the month. With regards to fixed manufacturing overhead, the company also applies these overhead costs to products based on direct labor hours. Fixed manufacturing overhead information for the month of May per hour appears as follows. Budgeted fixed overhead costs Budgeted direct labor hours Standard cost per direct labor hour Actual fixed overhead costs for May $ 864,000 +32,000 $ 27 $ 990,000 Required: a. Calculate the materials price variance and materials quantity variance using the format shown in Figure 10.4. Clearly label each variance as favorable or unfavorable. b. Calculate the labor rate variance and labor efficiency variance using the format shown in Figure 10.6. Clearly label each variance as favorable or unfavorable. C. Calculate the variable overhead spending variance and variable overhead efficiency variance using the format shown in Figure 10.8. Clearly label each variance as favorable or unfavorable. d. Company policy is to investigate all variances greater than 10 percent of the flexible budget amount for each of the 3 variable production costs: direct materials , direct labor, and variable overhead . Identify which of the six variances calculated in requirements a through c should be investigated. e Provide two possible explanations for each variance identified in requirement d. f. Calculate the fixed overhead spending variance and production volume variance using the format shown in Figure 10.13. Clearly label each variance as favorable or unfavorable actions (Appendix), Complete the following