David James is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and direct manufacturing labour. James 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 2019, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob: Direct materials(s) 03h. Cloth 13.00 Direct manufacturing labour 12 hours 0 hour24.00 Manufacturing everhead: Variable 1:10 Fined LIST. Standard cost per doo 33.30 Actual results for April 2019 were as follows: Production 35.000 deckobs Direct materials purchased 12.000th, at 11 Direct materials used 10.450 lb. Direct manufacturing labour 38.300 hours for 80.500 Variable manufacturing overhead 164,150 Fixed manufacturing overhead 1152.000 Requirements for question 2: a) For the month of April 2019, compute the following variances, indicating whether each is favourable (F) or Adverse (A): (28 marks) 1. Direct materials price variance (based on purchases). 2. Direct materials usage variance. 3. Direct manufacturing labour rate variance. 4. Direct manufacturing labour efficiency variance. 5. Variable manufacturing overhead expenditure variance. 6. Variable manufacturing overhead efficiency variance 7. Fixed manufacturing overhead expenditure variance. b) Can James use any of the variances to help explain any of the other variances? Give four examples. (7 marks) Please limit your answer to 500 words as a maximum Total marks 35 marks (Section B) Attempt only one question in this section Question 3 (30 marks): MVideo Ltd produces televisions. The company operates with two divisions. Division which