Budget Performance Report Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,000 pairs of shoes that required 10,500 units of material purchased at $8.20 per unit and 8,100 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $24,000 when entering varlances, use a negative number for a favorable cost variance and a positive mumber for an unfavorable cost variance the data in the following able to prepare the Budpet Performance Report for sioe Purpoou shoe company for September Standard Standard Standard Cost Hamulecturing Costs Price Quantity Per Unit Detals 18.40 per unit 1.00 units per pair 130.24 Drauber 11.50 per hour 2.00 bus per pall 2300 52.0 per hour 2.0 hours all 2.50 3010 Sol Purpose She Company Budget Percept For the month Ended September 30 Cast Variance Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30 Standard Cost at Actual Volume Cost Variance - (Favorable) Unfavorable Actual Costs Manufacturing Costs Direct materials Direct labor Factory overhead Total manufacturing costs Tinations Bore Saraswanges based on the budget performance Report for September, she wants to be sure she understand the results and has the following questions for you that go and 2). All questions pertain to the September Answer the following questions (1) and (2). All questions pertain to the September data 1. What caused the total cost variance for direct materials? s. The actual quantity of direct materials per unit was less than the standard quantity. b. The actual price for direct materials per unit was less than the standard price. c. The favorable price variance dominated the unfavorable quantity variance, causing the total cost variance for direct materials to be favorable. d. The unfavorable quantity variance dominated the favorable price variance, causing the total cost variance for direct materials to be unfavorable. t. A factor other than those listed caused the total cost variance for direct materials. 2. What caused the total cost variance for direct labor The actual number of labor hours per unit was less than the standard number b. The unfavorable rate variance was larger than the favorable time variance, causing the total cost variance for direct labor to be unfavorable The favole time variance was larger than the unfavorable rate variance, causing the total cost variance for direct labor to be favorable dhe te fortior hours per unit was less than the standard rate Atact than those listed caused the total cost variance for direct labor