2 After graduation from the Business Accounting program at Algonquin college, you proudly accepted a well paying position as a cost accountant for 3 Mazing Manufacturing located in Toronto, Ontario. The following is the standard card for the company's only product: 4 per Unit 5 Standard Qty or Standard Price Standard Cost 6 Manufacturing Costs Hrs or Rate 7 Direct materials (metres) 4.0 $ 4.00 $ 16.00 8 Direct labour (DL Hrs) 1.5 $ 10.00 15.00 9 Variable overhead (DL Hrs) 1.5 $ 3.00 4.50 10 Fixed overhead (DL Hrs) 1.5 $ 7.00 10.50 11 Standard cost per unit $ 46.00 12 13 Budgeted Denominator activity level monthly (DL Hrs) 22,500 14 Budgeted Fixed overhead costs monthly $ 157,500 15 16 For the past month of February 2021, the company proudly manufactured and sold 18,385 units. Variable and fixed manufacturing 17 overhead costs are applied to products on the basis of direct labour hours. All raw materials are direct materials, there are no indirect 18 materials. Additional actual manufacturing results, provided from the Controller, Dylan Conway, include: Metres or 19 Hours 20 Direct materials purchased (metres) 70,048 4.20 per metre 21 Beginning inventory of direct materials (metres) 22,100 22 Ending inventory of direct materials (metres) 22,000 23 Direct labour 29,402 $ 9.75 per hour 24 Fixed overhead costs $ 153,500 25 Variable overhead costs $ 90,000 Required: Mr. Conway has asked you to determine the following results for February 2021: 1. For direct materials: a. Price and quantity variances Price Variance Quantity Variance b. Journal entries to record activity Journal Entries Dr Accounts Cr To record the purchase of raw materials To record the usage of raw materials in production 2. For direct labour: a. Rate and efficiency variances Rate Variance 2. For direct labour: a. Rate and efficiency variances - - Rate Variance Efficiency Variance b. Journal entry to record labour activity . Journal Entry Dr - Accounts Cr - To record the Direct Labour - 3. Variable overhead spending and efficiency variances Spending Variance - IL Efficiency Variance 4. Fixed overhead budget and volume variances Budget Variance - Volume Variance