Ault 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 13,800 jackets per month: (Click the icon to view the cost data.) Requirements Data table 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). (Ente ) x Price variance DM ( DL ( ) x )x Direct materials ( 3.0 sq. m x Direct labour ( 2 hours x Manufacturing overhead: $3.90 per sq. m) $9.00 per hour) $ 11.70 18.00 Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct materials (DM) and direct labour (DL). (B ( = Efficiency variance Variable ( 2 hours x $0.67 per hour) Fixed ( 2 hours x $2.40 per hour) $ 1.34 4.80 6.14 $ 35.84 )x Total cost per jacket .. Data for November of the current year include the following: DM ( DL ( Requirement 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Er Ault Manufacturing Overhead Variances Total overhead variance: a. Actual production was 13,400 jackets. b. Actual direct materials usage was 2.80 m per jacket at an actual cost of $4.00 per m c. Actual direct labour usage of 24,600 hours cost $223,860. d. Total actual overhead cost was $83,000. Actual overhead cost Standard overhead allocated to production Print Done -