Budgeted fixed factory overhead cost = $120,000. In the month of March, the company used 3,480 pounds of aluminum to manufacture 926 units. The company paid $29.10 per pound during the month to purchase aluminum. At the beginning of the month, the company had 56 pounds of aluminum on hand. At the end of the month, the company had only 36 pounds of aluminum in its warehouse. The company used 4,500 direct labor hours during the month, at an average cost of $42.10 per hour. Required: Show all calculations in good form. Answers without supporting calculations will earn zero marks. Compute the following variances for the month: 1. The purchase price variance for aluminum. Indicate whether this variance is favorable or unfavorable. 2. The usage variance for aluminum. Indicate whether this variance is favorable or unfavorable. 3. The direct labor rate variance. Indicate whether this variance is favorable or unfavorable. 4. The direct labor efficiency variance. Indicate whether this variance is favorable or unfavorable. 5. As a manager, how would you use variance analysis in planning and decision-making? Support your comments with appropriate references

The Fabrication Company Standard Cost Sheet Product: B-321 Descriptions Quantity Cost Rate Subtotal Total Direct materials: Aluminum 4 pounds $ 25 per pound $ 100 PVC 1 pound 40 per pound 40 Direct labor 5 hours 40 per hour 200 Variable factory overhead 5 hours 12 per hour 60 Total variable manufacturing cost $ 400 Fixed factory overhead* 5 hours 24 per hour 120 120 Standard manufacturing cost per unit $ 520 Standard variable selling and administrative cost per unit $ 50