15 points Save Answem Middleton manufactures coffee mugs that it sells to other companies for customizing with their own logos. Middleton prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: Direct Materials (0.2 lbs. @ AED 0.25 per lb.) Direct Labor (3 minutes @ AED 0.14 per minute) Manufacturing Overhead: Variable (3 minutes @ AED 0.06 per minute) Fixed (3 minutes @ AED 0.13 per minute) Total Cost per Coffee Mug Actual cost and production information for July 2018 follows: AED 0.05 0.42 AED 0.18 0.39 0.57 AED 1.04 Actual cost and production information for July 2018 follows: . . There were no beginning or ending inventory balances. All expenditures were on account. Production and sales were 62,500 coffee mugs. Direct materials usage was 11,000 lbs. at an actual cost of AED 0.17 per lb. Direct labor usage of 197,000 minutes at a cost of AED 33,490. . Overhead cost was AED 10,835 variable and AED 29,965 fixed. . Selling and administrative costs were AED 130,000. Work out the Following: (15 marks) a. The Direct Materials Cost Variance (2 marks) b. The Direct Materials Efficiency Variance (2 marks) c. The Direct Labor Cost Variance (2 marks) d. The Direct Labor Efficiency Variance (2 points) e. The Variable Manufacturing Overhead Cost Variance (2 marks) f. The Variable Efficiency Overhead Efficiency Variance (2 marks) g. The Fixed Manufacturing Overhead Cost Variance (2 marks) h. The Fixed Manufacturing Overhead Volume Variance (1 mark) (Answers must be followed by F (favorable) or U (unfavorable)