2. The Beal Manufacturing Company's costing system 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 2009, Beal adopted the following standards for its manufacturing costs: Cost per Output Unit Direct Materials Direct manufacturing labor Manufacturing Overhead Variable Fixed Standard manufacturing cost per output unit Input 3lbs. at $5 per lb $15 5hrs. at $15per hr 75 $6 per DLH 30 $8 per DLH 40 $160 We assume that Beal company's only costs are in the manufacturing function, and we assume that no inventories exist at either the beginning or the end in January 2009. The denominator level for total manufacturing overhead per month in 2009 is 40,000 direct manufacturing labor hours. Beal's flexible budget for January 2009 was based on this denominator level. The company's operating budget for January 2009 included these data: Budgeted production Selling price per unit The Actual results for January indicated the following: Direct materials purchased and used Direct manufacturing labor Total actual manufacturing overhead(Variable and Fixed) Actual production 8,000 output units $200 23,100 lbs. at $5.2 per lb 40,100 hrs. at $14.60 per hr $600,000 7,800 output units Actual selling price per unit $210 Required: for the month of January 2009, compute the following variances, indicating whether each is favorable (F) or unfavorable (U) 1.Static budget variance, flexible budget variance and sales volume variance; 2.selling price variance 3.direct materials price variance and efficiency variance 4.direct manufacturing labor price variance and efficiency variance 5.Total manufacturing overhead spending variance 6. Variable manufacturing overhead efficiency variance 7.Production volume variance for fixed overhead