45 Clownfish Inc. produces fish tanks for aquariums in Ottawa. The company currently utilizes a standard costing system. Below outlines the standard cost for Clownfish's most popular product, the Glass Bowl. 5 Direct Materials 6 Variable Manufacturing Overhead 7 Direct Labour 8 Fixed Overhead 9 Quantity Required for one Glass Bowl 3.5 kg $ Standard Rate/Price 14.00 per kg 4.5 hours $ 9.00 per hour 5.5 hours $ 20.00 per hour 2.5 hours $ 11.00 per hour Overhead is allocated based on direct labour hours and the average production volume of 15,500 Glass Bowls. This currently 10 utilizes 80% of the maximum capacity. 11 12 Below is information related to the February 2022 production, in which 13,000 Glass Bowls were produced: 13 14 15 Direct Materials purchased 16 Direct materials used 17 Direct Labour 18 Variable Overhead 19 Fixed Overhead 20 21 REQUIRED Quantity Cost 45,000 $700,000 56,000 $900,000 45,000 $ 765,000 $ 250,000 $ 390,000 22 A) Calculate the standard quantity of materials needed to make 13,000 Glass Bowls 23 B) Calculate the standard quantity of labour-hours needed to make 13,000 Glass Bowls 24 C) Calculate the Direct Materials Price Variance. Indicate if it is favourable or unfavourable. 25 D) Calculate the Direct Materials Quantity Variance. Indicate if it is favourable or unfavourable. 26 E) Calculate the Direct Labour Efficiency Variance. Indicate if it is favourable or unfavourable. 27 28