1 Not yet answered Marked out of 10.00 Flag question (10 percent) Leader Tools uses standard cost system for its production of units, and uses cost variances as a way of detecting cost that may require more control. Production of its units occurs evenly throughout the year and an abbreviated standard cost sheet for a component that is manufactured exclusively in one plant is as follows: Direct materials (2.2 kilograms)....... Direct labor (24 minutes)... Variable manufacturing overhead (0.25 machine hour)............. Fixed manufacturing overhead (0.25 machine hour)................. Standard unit cost $26.40 4.40 8.00 I 6.00 $44.80 In the last month, the corporation's production data was: a. Purchased 18,000 kilograms of materials at a cost of $11.80 per kilogram, b. Produced 7,500 units and sold 6,000 units. c. Fixed manufacturing overhead budget for the month was $50,000. d. Used 18,000 kilograms of materials in production from this month's purchase. e. Used 3,350 direct labor hours for production and paid $11.50 per direct labor hour. f Worked 2.250 actual machine hours recorder 1 new message f. Worked 2,250 actual machine hours recorded at $30.00 per machine hour for variable manufacturing overhead. g. Spent $53,100 for fixed manufacturing overhead. Required: Answer the following questions for variances and state whether the amount is favorable or unfavorable. For your answers, do not input "$" sign and "," sign in numbers. Answer the following questions: (Compute to two decimal places, if necessary.) Questions: 1. For direct materials, what is the value as its quantity variance? 2. For direct materials, what is the value of its price variance? 3. For direct labor, state the value of its rate variance. 4. For direct labor, state the value of its efficiency variance. Answer: Choose one of the following: 3. For direct labor, state the value of its rate variance. 4. For direct labor, state the value of its efficiency variance. 5. For variable manufacturing overhead, what is the spending variance? 6. For variable manufacturing overhead, what is its efficiency variance? 7. For fixed manufacturing overhead, what is its budget variance? 8. For fixed manufacturing overhead, what is its volume variance? Favorable Unfavorable