8-44 Review of Chapters 7 and 8, 3-variance analysis. (CPA, adapted) 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 2017, Beal adopted the following standards for its manufacturing costs: Input 5 lb. at $4 per lb. 4 hrs. at $16 per hr. Cost per Output Unit $ 20.00 64.00 Direct materials Direct manufacturing labor Manufacturing overhead: Variable Fixed Standard manufacturing cost per output unit $8 per DLH $9 per DLH 32.00 36.00 $152.00 The denominator level for total manufacturing overhead per month in 2017 is 37,000 direct manufacturing labor-hours. Beal's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials purchased Direct materials used Direct manufacturing labor Total actual manufacturing overhead (variable and fixed) Actual production 40,300 lb. at $3.80 per lb. 37,300 lb. 31,400 hrs. at $16.25 per hr. $650,000 7,600 output units 1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2017 2. For the month of January 2017, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance