Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: SQ SP Direct materials Direct labor 1.2 pounds $ 1.50 per pound 0.8 hours $12.00 per hour During the month of May, the company made 620 cakes and incurred the following actual costs. Direct materials purchased and used (920 pounds) $1,196 Direct labor (680 hours) $7,820 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct materials spending variance 4. Direct labor rate variance 5 Direct labor efficiency variance 6. Total direct labor spending variance Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 260 units in July and 370 units in August. Each unit requires 7 feet of wood at a cost of $0.90 per foot. Preston wants to always have 300 feet of wood on hand in materials Inventory. Compute Preston's direct materials purchases budget for July and August. Budgeted direct materials purchases July August Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $51,000 as follows: Sales revenue Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Net operating income (loss) Drafty Model $ 180,000 126,000 $ 54,000 43,000 $ 11,000 62,000 $ (51,000) Eliminating the Drafty product line would eliminate $43,000 of direct fixed costs. The $62,000 of common fixed costs would be redistributed to Blowing Sand's remaining product lines. Will Blowing Sand's net operating income increase or decrease if the Drafty model is eliminated? By how much? Total Profit by A relevant cost is: Multiple Choice the foregone benefit of choosing to do one thing instead of another a cost that has already been incurred a cost that differs across decision alternatives a cost that is the same regardless of the alternative the manager chooses Becker Bikes manufactures tricycles. The company expects to sell 480 units in May and 610 units in June. Beginning and ending finished goods for May is expected to be 160 and 125 units, respectively. June's ending finished goods is expected to be 135 units. The company's variable overhead is $9.00 per unit produced and its fixed overhead is $9,500 per month. Compute Becker's manufacturing overhead budget for May and June. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) May June Budgeted manufacturing overhead