Data P10-2 Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of direct labor hours. The followin comes from the company's budget for the current yea FLANDRO COMPANY Budget for current year: Denominator activity (direct labor-hours) 5.000 $25,000 Variable manufacturing overhead cost Fixed manufacturing overhead cost $59,000 Standard Standard Standard cost card: Quantity Price Standard or Rate Cost or H ours Direct material (yards) 3.0 $4.40 $13.20 per yard Direct labor (hours) 1.0 $12.00 12.00 per DLH Mfg. overhead, percentage of direct labor cos 140% 6.80 $42.00 Standard cost per unit Units produced during year 6.000 Incurred costs: Quantity Price or Rate Cost or Hou Materials purchased (yards) 24,000 $4.80 $115,200 per yard Materials used in production (yards) 18,500 Direct labor cost incurred (hours) 5,800 $13.00 $75.400 per DLH Variable manufacturing overhead cost incurred $29,580 Fixed manufacturing overhead cost incurred $60,400 Required 1. Redo the standard cost card in a clearer, more usable format by detailing the variable and fixed overhead cost elements. 2. Prepare an analysis of the variances for materials and labor for the year. 3. Prepare an analysis of the variances for variable and fixed overhead for the year. 4. What effect, ifany, does the choice of a denominator activity level have on unit standard costs? Is the volume variance a controllable variance from a spending point of view? Explain