Amy Ann, Inc. designs and manufactures fleece quarter-zip jackets. It sells its jackets to brand-name outdoor outfitters in lots of one dozen. Amy Ann's May 2017 static budget and actual results for direct inputs are as follows: (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2017. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget columns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent.) Actual Input Efficiency Flexible Actual Price Qty x Budget May 2017 Results Variance Budgeted Price Units Direct materials Variance Direct labor Total variance $ The total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined is This % of the total cost of direct materials and direct variance is manufacturing labor in the flexible budget. (Round the variance to the nearest cent and the percentage to two decimal places, X.XX%.) Requirement 2. Comment on the May 2017 results. Would you continue the "experiment" of using the new material? O A. Efficiencies have improved in the direction indicated by the production managerbut, it is unclear whether they are a trend or a one-time occurrence. Amy Ann should continue to use the new material, especially in light of its superior quality and feel; but it may want to re-examine the standard material price since the new material costs more than the old. OB. Efficiencies have improved in the direction indicated by the production manager. Amy Ann should not continue to use the new material, though, since the overall efficiency variance is still unfavorable. OC. Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and feel, Amy Ann should not continue to use the new material in light of the unfavorable efficiencies. OD. Efficiencies have improved in the direction indicated by the production manager but Amy Ann should not continue to use the new material. Use of the new material would require a change to the standard material price since the new material costs more than the old. Making this change to the cost accounting system is complex and very expensive. Data Table Static Budget Number of jacket lots (1 lot = 1 dozen) Per Lot of Jackets: 600 Direct materials 14 yards at $1.80 per yard = $25.20 1.5 hours at $8.40 per hour = $12.60 Direct manufacturing labor Actual Results Number of Jacket lots sold Total Direct Inputs: 625 Direct materials 10,000 yards at $2.00 per yard = $20,000.00 813 hours at $8.50 per hour = $6,910.50 Direct manufacturing labor Print Done