ACC 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 2020, ACC adopted the following standards for its manufacturing costs:

InputCost per Output Unit

Direct Materials5 lbs. at $4 per lb.$20

Direct Labor4 DLH at $14 per DLH56

Manufacturing Overhead

Variable$5 per DLH20

Fixed$9 per DLH36

Standard Cost per output unit$132

ACC's budgeted annual production is 108,000 output units. The records for January indicated the following:

Direct materials purchased 46,000 lb. at $4.10 per lb.

Direct materials used 42,850 lb.

Direct manufacturing labor 34,600 hours at $14.75 per hour

Variable manufacturing overhead$172,000

Fixed manufacturing overhead$324,000

Actual production8,700 output units

Instructions:

1. For the month of January, compute the following variances, indicating whether each is favorable (F) or unfavorable (U)
2. Direct materials purchase price variance
3. Direct materials quantity variance
4. Direct manufacturing labor rate variance
5. Direct manufacturing labor efficiency variance
6. Variable manufacturing overhead spending variance
7. Variable manufacturing overhead efficiency variance
8. Fixed manufacturing overhead budget variance
9. Can ACC use any of the variances to help explain any of the other variances? Give at least one example.