Button Manufacturing company's costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labour hours (DLH). At the beginning of 2016, Button adopted the following standards for manufacturing costs: The denominator level for total manufacturing overhead per month in 2016 is 24,000 direct manufacturing labour hours. Budgeted units of production for January are 8,000. The records for January indicated the following actual results: Direct materials purchased 25,000 kgs @ $5.20 per kgs Direct materials used 38, 100 kgs Direct manufacturing labour used 25, 100 hours @ $14.60 per hour Total actual manufacturing overhead $600,000 Actual units of production 7, 800 output units All variances are calculated at the earliest possible time For the month of January calculate the following variances, indicating whether each is favourable or unfavourable: (a) Direct materials price and quantity variances (b) Direct labour rate (price) and efficiency variances (c) Variable overhead spending and efficiency variances (d) Fixed Overhead Budget (Spending) and Production Volume variances (e) Using your answers to the requirements above, explain to the manager of the company why actual costs differed from the standard costs expected and what actions could be taken to change the outcomes. (f) Why is the flexible budget variance the same as the spending variance for Fixed overhead? Explain briefly