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Bulletproof Boyscouts Co . is a company that manufactures protective equipment related to sports. Jungkook, the newly assigned general manager, would like to know whether

Bulletproof Boyscouts Co. is a company that manufactures protective equipment related to sports. Jungkook, the newly assigned general manager, would like to know whether the company is doing well or not. He talked with the previous manager, Seokjin, who reassured him that "the company was doing just fine" and that "the cost is all under control". To verify whether this was true or not, he is determined to review the company's income statement and the relevant information provided within.
Bulletproof Boyscouts Co. Operates under a standard costing system. Each completed unit of protective equipment requires 2kg of direct materials at $8 per kilogram and 3 direct labor hours with the rate of $9.50 per hour.
During 2022, Bulletproof Boyscouts Co produced 15,000 and incurred the following costs:
a) Purchased 60,000 kilograms of materials at a cost of $6 per kilogram.
b) Used 49,200 kilograms of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)
c) The factory workers worked 50,000 direct labor hours at $10.00 per hour.
Required:
Compute the direct material price and usage variances for 2022!
Compute the direct labor price and usage variances for 2022!
Verify whether the previous manager was telling the truth or not: is the company really doing well and the cost is kept under control? (Hint: Summarize the variances that you computed above by showing the net overall favorable or unfavorable flexible-budget variance for the month)
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