13-36 Review of Chapter 13. (CPA, adapted) The Blazon Manufacturing Company's costing ystem has 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) At the beginning of 2013, Blazon adopted the folowing standards for lts manufacturing costs: Cost per Output Unit 20.00 56.00 Input Direct materials Direct manufacturing labor Manufacturing overhead 4 lbs. at $5 per Ib. hours at $14 per hour Variable Fixed $5 per DLH $9 per DLH 20.00 36.00 $132.00 Standard manufacturing cost per output unlt The denominator level for total manufacturing overhead per month in 2013 is 39,000 direct manufacturing labor-hours. Blazon's flexible budget for January 2013 was based on this denominator level. The records for January indicated the following: Direct materlals purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead (variable and fixed) Actual production 37,000 lb. at $4.90 per Ib. 34,000 lb. 31,600 hours at $14.10 per hour $650,000 8,400 output units 1. Prepare a schedule of total standard manufacturing costs for the 8,400 output units in January 2013. 2. For the month of January 2013, compute the following variances, indicating whether each is favorable or unfavorable (U: a. Direct materials price varlance, based on purchases b. Direct materials efficiency varlance c. Direct manufacturing labor price varlance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance t. Variable manufacturing overhead efficlency variance g. Production-volume variance