$8-25$ Flexible$-$budget variances, review of Chapters $7$ and $8.($LO $4)$ Eric Williams is a cost accountant and business analyst for Diamond Design Company $($DDC$),$ which manufactures expensive brass doorknobs. DDC uses two direct$-$cost categories: direct materials and direct manufacturing labour. Williams feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon kilograms of materials used$\mathrm{.}309$At the beginning of the year, DDC budgeted annual production of $420,000$ doorknobs and adopted the following standards for each doorknob: BackThe table is as follows. Parameter Input Cost per Output Unit Direct materials, brass $0\mathrm{.}3$ kilograms at $$10$ per kilogram $ $3\mathrm{.}00$ Direct manufacturing labour $1\mathrm{.}2$ hours at $$17$ per hour $20\mathrm{.}40$ Manufacturing overhead Variable $$5$ per kilogram times $0\mathrm{.}3$ kilogram $1\mathrm{.}50$ Manufacturing overhead Fixed $$15$ per kilogram times $0\mathrm{.}3$ kilogram $4\mathrm{.}50$ Standard cost per door knob blank $$29\mathrm{.}40$ BackActual results for the month of April were as follows: BackThe table is as follows. Parameter Data Production $29,000$ doorknobs Direct materials purchased $12,400$ kilograms at $$11$ per kilogram Direct materials used $8,500$ kilograms Direct manufacturing labour $29,200$ hours for $$671,600$ Variable manufacturing overhead $ $65,100$ Fixed manufacturing overhead $$158,000$ BackRequired For the month of April, compute the following variances, indicating whether each is favourable $($F$)$ or unfavourable $($U$)$:Direct materials price variance $($based on purchases$)$Direct materials efficiency varianceDirect manufacturing labour price varianceDirect manufacturing labour efficiency varianceVariable manufacturing overhead spending varianceVariable manufacturing overhead efficiency varianceProduction$-$volume varianceFixed manufacturing overhead spending varianceCan Williams use any of the variances to help explain any of the other variances? Give examples. Check Figure: Fixed manufacturing overhead spending variance