Control Units, Variance Investigation Buenolort Company produces a well-known cologne. The standard manufacturing cost of the cologne is described by the following standard cost sheet: Direct materials: Liquids (4.5 oz. $0.40) Bottles (1 50.05) Direct labor (0.2 hr. 515.00) Variable overhead (0.2 h $5.00) Faced overhead (0.2h $1.50) 3.00 1.00 0.30 Standard cost per unit $6.15 Management has decided to investigate only those variances that exceed the lesser of 10% of the standard cost for each category or $20,000 During the best quarter, 250,000 four-ounce bottles of cologne were produced. Descriptions of actual activity for the quarter follow: a. A total of 1.35 million Ounces of guids was purchased, mixed, and processed. Evaporation was higher than expected (no inventories of quads are maintained). The price paid per ounce averaged $0.42 b. Exactly 250,000 bottles were used. The price paid for each bottle was 0.048 c. Direct labor hours totaled 48,250, with a total cost of 5733.000 Normal production volume for Bueno orlis 250,000 botti per quarter. The standard overhead rates are computed by using normal volume. All overhead costs are incurred uniformly throughout the year. Required: 1. Calculate the upper and lower controllimits for materials and tabor Check My Work 5 more Check My Works remaining Previous Next > Save and Exe Submit Assignment for Grading LO 1. Calculate the upper and lower controllimits for materials and tabor Liquid standard Upper controllimit Lower controllimit Bottle standard Upper control limit Lower controllimit Direct labor standard Upper controllimit Lower controllimit 2. Compute the total materiais variance, and break it into price and usage variances would these variances be investigated? If there is no variance, enter in the amount box and select "No variance from the dropdown menu. Would it be investigated? Total qud variance Unfavorable Material price variance Unfavorable Materials usage variances Unfavorable Total bottle variance Material price variance Check My Work 5 more Check My Work oming Previous Next > Emal instructor Save and Exit Submit Assignment for Grading 8 9 0 If there is no variance, enter pnce and usage variances. Would these variances be investigated? in the amount box and select "No variance from the dropdown menu. Would it be investigated? Total liquid variance Unfavorable Materials price variance Unfavorable Materials usage variance Unfavorable Total bottle variance Favorable No Materials price variance Favorable Materials usage variance No variance 3. Compute the total labor variance, and break it into rate and efficiency variances. Would these variances de investigated? Round intermediate calculations to two decimal places, if necessary and round final answers to the nearest dollar Would it be investigated? Total labor variance Favorable Labor rate variance Unfavorable Labor efficiency variance Favorable Partially correct Check My Work 5 more Check My Work uses roman Previous Next > Save and Submit Assignment for Grading 0