8-34 Flexible-budget variances, review of Chapters 7 and 8. 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 labor. Williams feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. At the beginning of 2017, DDC budgeted annual production of 420,000 doorknobs and adopted the fol- lowing standards for each doorknob: Direct materials (brass) Direct manufacturing labor Manufacturing overhead: Input 0.3 lb. @ $10/lb. 1.2 hours @ $17/hour Cost/Doorknob $ 3.00 20.40 Variable $5/lb. x 0.3 lb. 1.50 Fixed $15/lb. x 0.3 lb. 4.50 Standard cost per doorknob $29.40 Actual results for April 2017 were as follows: Production Direct materials purchased Direct materials used Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead 29,000 doorknobs 12,400 lb. at $11/lb. 8,500 lbs. 29,200 hours for $671,600 $ 65,100 $158,000 1. For the month of April, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance