Actual co Cole manufactures coffee mugs that it sells to other companies for customizing with their own logos. Cole prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 60,000 coffee mugs per month: (Click the icon to view the cost data) CH i (Click Read the Actual cost and production information for July 2018 follows: (Click the icon to view actual cost and production information.) RER Read the requirements. . a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,700 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 200,000 minutes at a total cost of $34,000. e. Actual overhead cost was $9,000 variable and $31,500 fixed. f. Selling and administrative costs were $123,000. a table $ 0.05 Direct Materials (0.2 lbs @ $0.25 per lb) Direct Labor (3 minutes @ $0.14 per minute) 0.42 Manufacturing Overhead: Variable (3 minutes @ $0.06 per minute) $ 0.18 0.45 0.63 Fixed (3 minutes @ $0.15 per minute) $ 1.10 Total Cost per Coffee Mug Print Done Requirement 1. Compute the cost and officienty variance for direct mand direct to Begin with the cost variances Select the required formulas.com the con variancestor de materials and director, indentity whereach variis favorable erfarbe U (ACE aquest FOH verndando com 50 de Formula Varance De most van Debora Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct material actual quantity: FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance (AC - SC) AQ (AC-SC) * SQ (AQ - SQ) * AC (AQ - SQ) * SC Actual FOH - Allocated FOH Actual FOH - Budgeted FOH Bugeted FOH - Allocated FOH