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E8-34 (similar to) E Question Help Colden Thomas is a cost accountant and business analyst for Dallas Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Thomas feels that manufacturing overhead is most closely related to material usage Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Read the requirements Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U) Before computing the variances complete the tables below. Begin by completing the table for direct materials Actual Input Qty Actual Costs Budgeted Price Flexible Incurred Purchases Usage Budget Direct materials Requirements 1. For the month of April, compute the following variances, indicating whether each is favorable (F) or unfavorable (U). a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance labor efficiency variance Production-volume variance h. Fixed manufacturing overhead spending variance Can Thomas use any of the variances to help explain any of the other ariances? Give examples 2. PrintDone Data Table - X Data Table At the beginning of 2017, DDC budgeted annual production of 440,000 doorknobs and adopted the following standards for each doorknob Actual results for April 2017 were as follows Production Direct materials purchased Direct materials used Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead 32,000 doorknobs Input Cost/Doorknob 12,500 lb. at $12/lb Direct materials (brass) Direct manufacturing labor 1.2 hours Manufacturing overhead 0.3 lb. @ $11/lb $ 8,000 lbs $20/hour 29,600 hours for $621,600 $64,300 $157,000 2.10 4.20 33.60 Variable $7/lb x 0.3 lb Fixed $14/lb. x 0.3 lb Standard cost per doorknob Print Done Print Done