A Data Table $ Direct materials 3.0 sq.mx $4.00 per sq. m) $ 12.00 Direct labour (2 hours x $9.40 per hour) 18.80 Manufacturing overhead: Variable ( 2 hours x $0.65 per hour) 1.30 4.40 5.70 Fixed ( 2 hours x $2.20 per hour) $ 36.50 Total cost per jacket... Data for November of the current year include the following: a. Actual production was 13,600 jackets. b. Actual direct materials usage was 2.70 m per jacket at an actual cost of $4.15 per m c. Actual direct labour usage of 24,480 hours cost $235,008. d. Total actual overhead cost was $79,000. Print Done i Requirements 1. Compute the price and efficiency variances for direct materials and direct labour. 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. 3. Avanti's management intentionally purchased superior materials for November production. How did this decision affect the other cost variances? Overall, was the decision wise? Explain. Print Done Avanti manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a jacket is based on the static budget volume of 14,000 jackets per month: E: (Click the icon to view the cost data.) Requirements Requirement 1. Compute the price and efficiency variances for direct materials and direct labour. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) x Price variance DM ( )x = DL ( ) X Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Efficiency variance DM ( DL ( ) Requirement 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Avanti Manufacturing Overhead Variances Total overhead variance: Actual overhead cost Standard overhead allocated to production Total overhead variance Overhead flexible budget variance Actual overhead cost Flexible budget overhead for actual outputs Overhead flexible budget variance Overhead flexible budget variance: Actual overhead cost Flexible budget overhead for actual outputs Overhead flexible budget variance Production volume variance: Flexible budget overhead for actual outputs Standard overhead allocated to production Production volume variance Requirement 3. Avanti's management intentionally purchased superior materials for November production. How did this decision affect the other cost variances? Overall, was the decision wise? Explain. The favourable variances more than offset the unfavourable variances. In total, the favourable variances far exceed the unfavourable variances If the superior materials decreased materials and labour usage, then management's decision was Choose from any list or enter any number in the input fields and then continue to the next