Cole manufactures collee mugs that it sells to other companies for customizing with their own logos. Cole prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,800 coffee mugs per month: (Click the icon to view the cost data.) Actual cost and production information for July 2018 follows: (Click the icon to view actual cost and production Information.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost varlances. Select the required formulas, compute the cost variances for direct materials and direct labor, and Identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost: AQ = actual quantity; FOH = fixed overhead: SC = standard cost. SQ = standard quantity.) Formula Variance = Direct materials cost variance Direct labor cost variance 0 Data Table 0 More Info $ 0.05 0.36 Direct Materials ( 0.2 lbs @ S 0.25 per lb) Direct Labor ( 3 minutes @ S 0.12 per minute) Manufacturing Overhead: Variable ( 3 minutes @ S 0.04 per minute) S Fixed ( 3 minutes S 0.14 per minute) a. There were no beginning or ending inventory balances. All expenditures were ori account. b. Actual production and sales were 62,500 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of S0.17 per lb. d. Actual direct labor usage was 198,000 minutes at a total cost of $29,700. e. Actual overhead cost was $6,930 variable and $33.870 fixed. f. Selling and administrative costs were $122,000. 0.12 0.42 0.54 S 0.95 Total Cost per Coffee Mug Print Done Print Done