Colden Roberts is a cost accountant and business analyst for Dayton Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Roberts feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. At the beginning of 2017, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob: Direct materials (brass) Direct manufacturing labor Manufacturing overhead: Variable Fixed Standard cost per doorknob Input 0.3 lb. @ $10/lb. 1.2 hours @ $18/hour $4/lb x 0.3 lb. $14/lb. x 0.3 lb. Cost/Doorknob $ $ 3.00 21.60 1.20 4.20 30.00 Actual results for April 2017 were as follows: Production Direct materials purchased Direct materials used Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead 32,000 doorknobs 12,200 lb. at $12/lb. 9,000 lbs. 29,500 hours for $649,000 $64,400 $152,000 1. For the month of April, compute the following variances, indicating whether each is favorable (F) or unfavorable (U). a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance 2. Can Roberts use any of the variances to help explain any of the other variances? Give examples. Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Direct materials Actual Costs Incurred Actual Input Qty. X Budgeted Price Purchases Usage Flexible Budget