E8-34 (similar to) Question Help Colden Adams is a cost accountant and business analyst for Dandy Design Company (DDC), which manufactures expensive brass doorknobs, DDC uses two direct cost categories: direct materials and direct manufacturing labor. Adams feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Read the requirements. Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). i Requirements -X Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Qty. Actual Costs Incurred Budgeted Price Purchases Usage Flexible Budget Direct materials 1. For the month of April, compute the following varlances, 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 Adams use any of the variances to help explain any of the other variances? Give examples. Print Done Enter any number in the edit fields and then click Check Answer. Data Table Data Table At the beginning of 2017, DDC budgeted annual production of 410,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob $ 2.40 Direct materials (brass) Direct manufacturing labor Manufacturing overhead: 0.3 lb. @ $8/lb. 1.2 hours @ $18/hour Actual results for April 2017 were as follows: Production 34,000 doorknobs Direct materials purchased 13,100 lb. at $9/lb. Direct materials used 10,150 lbs. Direct manufacturing labor 29,700 hours for $712,800 Variable manufacturing overhead $65,200 Fixed manufacturing overhead $156,000 21.60 Variable $6/b x 0.3 lb. 1.80 4.20 Fixed $14/b. x 0.3 lb. $ 30.00 Standard cost per doorknob Print Done Print Done