Avanti manufactures embroidered jackets. The company prepares flexible budgets and uses a standard post systern to control manufacturing costs. The following standard unit cost of a jacket is based on the static budget volume of 14,100 jackets per month Click the icon to view the cost data.) Requirements A Data Table le (U).) Requirement 1. Compute the price and afticiency 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) ari direct labour (DL) (Ent ) = Price variance ) II ) DM DL Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct materials (DM) and direct labour (DL). rable (U).) X Efficiency variance - = Direct materials 3.0 sq.mx $4.10 per sq. m) $ 12.30 Direct labour (2 hours x $9.30 per hour) ........ 18.60 Manufacturing overhead Variable ( 2 x $ hours $0.88 per hour) ..... $ 1.32 4.20 5.52 Fibed ( 2 hours x S2.10 per hour)....... $ 38.42 Total cost per jacket Data for November of the current year include the following: a. Actual produclion was 13,700 jackels. b. Actual direct materials usage was 2.60 m per jacket at an actual cost of $4.20 DM DL ( - Requirement 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. E able (U).) perm? c. Actual direct labour usage of 25 200 hours cost $239, 400 d. Total actual overhead cost was $77,000. Avanti Manufacturing Overhead Variances Total Overhead variance Actual overhead cost Standard overhead allocated to production Print Done Total overhead variance Overhead flexible budget variance Actual overhead cost Flexible budget overhead for actual outouts Overhead flexble budget variance Production volume vanance: Flexible budget overhead for actual outputs Choose from any list or enter any number in the input fields and then continue to the next question. Production volume variance: Flexible budget overhead for actual outputs Standard overhead allocated to production Production volume variance Requirement 3. Avanti's management intentionally purchased superior materials for November production. How did this decision affect the other cost variances? Overall, was the decision wise? Explain. The favourable variances more than offset the unfavourable variances. In total, the favourable V variances far exceed the unfavourable variances. If the superior materials decreased materials and labour usage, then management's decision was Choose from any list or enter any number in the input fields and then continue to the next