1. For the month of January, compute the following variances indicating whether each is favorable (F) or unfavorable (U):

a. Direct material variances

b. Direct labor variances

c. Variable overhead variances

d. Fixed overhead variances

Hopworks Urban Brewery (HUB) is a craft brewery in Portland, Oregon. It sells its beer in its brewpub and in cans to local grocery stores. It is registered as a B-Corporation and aims to be a sustainable, community-focused business through building strong relationships within the community. HUB has a costing system with two direct cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). HUB is looking into using a standard cost system and has developed the following standards (one unit is a batch of 12 dozen cans of beer). Per Unit 60 pounds at $5 per lb. 2 hours at $13 per hour Standards Direct materials Direct manufacturing labor Manufacturing overhead Variable Fixed Budgeted Fixed costs per month $7 per DLH $5 per DLH $1,250 Actual cost and operating data from January: Direct materials purchased 4,260 pounds at $4.90 per pound Direct materials used 4,200 pounds to produce 60 batches Direct manufacturing labor $2,070 at an average cost of $13.80 Actual fixed manufacturing overhead $1,350 Actual variable manufacturing overhead $1,125