Accountant and ss doorknobs. illiams feels that es manufacturing 8-34 Flexible-budget variances, review of Chapters 7 and 8. Eric Williams is a cost accountar business analyst for Diamond Design Company (DDC), which manufactures expensive brass door DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Williams fee manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufa 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 lowing standards for each doorknob: Input 0.3 lb. @ $10/lb. 1.2 hours @ $17/hour Cost/Doorknob $ 3.00 20.40 Direct materials (brass) Direct manufacturing labor Manufacturing overhead: Variable Fixed Standard cost per doorknob $5/lb. X 0.3 lb. $15/lb. X 0.3 lb. 1.50 4.50 $29.40 ASSIGNME its for April 2017 were as follows: Antal results for Production Direct materials purchased Direct materials used Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead 29,000 doorknobs 12,400 lb. at $11/b. 8,500 lbs. 29,200 hours for $671,600 $ 65,100 $158,000 the month of April, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labor price variance Direct manufacturing labor efficiency variance e Variable manufacturing overhead spending variance [ Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance 2 Can Williams use any of the variances to help explain any of the other variances? Give examples