8-28 Flexible-budget variances, review of Chapter 7 and 8 David James is a cost accountant and bus ness analyst for Doorknob Design Company (DDC, which manufactures expensive brass doorknobs, DOC uses tive direct cost categories direct materials and direct manufacturing labor. James feels that manufac turing overhead is most closely related to material usage. Therefore, DDC allocate manufacturing over head to production based upon pounds of materials used. At the beginning of 2012. DDC budgeted annual production of 400,000 doorknobs and adopted the fol lowing standards for each doorknob Input Cost/Doorknob Direct materials (brass 0.31.310/ Direct manufacturing labor 12 hours show 24.00 Manufacturing overhead Variable St. x 0.3 1.80 Fred Sista x 0.316. 4.50 Standard cost per doorknob $23.30 Actual results for April 2012 were as follow Production 35.000 doorknobs Direct materials purchased 12,000 lb at $11/ Direct materials used 10,450 lb Direct manufacturing labor 34.500 hours for $808,500 Variable manufacturing overhead 554, 150 Fixed manufacturing overhead $152.000 1. For the month of April, compute the following variances, indicating whether each is tevorable 17 or unfavorable 2. Direct materials price variance (based on purchases! Direct materials efficiency variance c. Direct manufacturing labor price variance 4. Direct manufacturing labor efficiency variance e Variable manufacturing overhead spending variance Variable manufacturing overhead officiency variance