Enc Williams is a cost accountant and business analyst for Diamond Design Company (DDC), which manufactures expensive brass doorknobs DDC uses two direct-cost categories direct materials and direct manufacturing labor. 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) Data table Click the icon to view the actual results for Apr) - X Data table - X Actual results for April 2017 were as follows Production 29.000 doorknobs Direct materials purchased Direct materials used Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead 12.400 $11 8.500 lbs 29.200 hours for $671,000 $65.100 $156,000 At the beginning of 2017, DOC budgeted annual production of 420,000 doorknobs and adopted the following standards for each doorknob Direct materials (brass) Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard cost per doorknob Input 036 $10 12 hours $17/hour 1503 $1503 CostDoorknob 300 20.40 1.50 4.50 29.40 Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Direct materials Actual Input Qty. x Budgeted Price Actual Costs Incurred Flexible Purchases Usage Budget a. Direct materials price variance (based on purchases) is b. The direct materials efficiency variance is Now complete the table for direct labor. Direct Manuf. Labor Actual Costs Incurred Actual Input Qty. x Budgeted Price Flexible Budget c. The direct manufacturing labor price variance is d. The direct manufacturing labor efficiency variance is Next complete the table for variable overhead (Ahhreviation used: Manuf Manufacturing) Next, complete the table for variable overhead. (Abbreviation used: Manuf = Manufacturing) O Variable Manuf. OH Actual Costs Incurred Actual Input Qty. x Budgeted Price e. The variable manufacturing overhead spending variance is f. The variable manufacturing overhead efficiency variance is Complete the table for fixed overhead. Flexible Budget Allocated Overhead Same Budgeted Lump Actual Costs Sum Regardless Flexible Allocated Incurred of Output Level Budget Overhead Fixed Manuf. OH g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Williams use any of the variances to help explain any of the other variances? Give examples The direct materials price vanance indicates that DOC paid ecency vacance for brass than they had planned if this is because they purchased a quality brass, may explain why they used Intum, since variable manufacturing overhead is assigned based on pounds of materials used, this directly led to the valable overhead eficiency variance. The purchase of this qty of brass may also explain why it took produce the doorknots than expected (he direct labor efficiency variance) brass than expected (nading to an materi bor time t Finally, the direct laber price variance could imply that the workers who were heed were expecenced than expected, which could also be related to the dreamerial and direct labor efficiency vanaces