Ethan Thomas is a cost accountant and business analyst for Damask Design Company (DDC), which manufactures expensive brass doorknobs DDC uses two direct-cost categories: direct materials and direct manufacturing labour. Thomas feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon kilograms of materials used. Data Table X And Data Table Required X 26,000 doorknobs 12,700 kg at $11/kg 7,500 kgs. 29,300 hours for $586,000 $65,000 1. For the month of April, compute the following variances, indicating whether each is favourable (F) or unfavourable (U). a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labour price variance d. Direct manufacturing labour 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 Thomas use any of the variances to help explain any of the other variances? Give examples At the beginning of 2017, DDC budgeted annual production of 400,000 doorknobs and adopted the following standards for each doorknob Actual results for April 2017 were as follows Production Direct materials (brass) Direct manufacturing labour Manufacturing overhead Variable Input 0.3 kg. @$9/kg Cost/Doorknob Direct materials purchased 2.70 Direct materials used 1.2 hours @ $18/hour 21.60 Direct manufacturing labour Variable manufacturing overhead $6/kg x 0.3 kg 1.80 Fixed manufacturing overhead $153,000 Fixed Standard cost per doorknob $14/kg. x 0.3 kg. 4.20 S 30.30 Print Done Print Done Print Done for brass than they had planned. If this is because they purchased a quality brass, it may explain why they used brass than expected (leading to a(n) material h. The fixed manufacturing overhead spending variance is Requirement 2. Can Thomas use any of the variances to help explain any of the other variances? Give examples The direct materials price variance indicates that DDC paid efficiency variance) Choose from any list or enter any number in the input fields and then continue to the next question ASUS VivoBook 8 9 S B THE 0 27 W E R T Y U A S D F G H >> C B N M K Ethan Thomas is a cost accountant and business analyst for Damask Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two dim manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon kilograms of materi (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Required Requirement 1. For the month of April, compute the variances, indicating whether each is favourable (F) or unfavourable (U). a. Direct materials price variance (based on purchases) is b. The direct materials efficiency variance is c. The direct manufacturing labour price variance is d. The direct manufacturing labour efficiency variance is e. The variable manufacturing overhead spending variance is f. The variable manufacturing overhead efficiency variance is g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Thomas use any of the variances to help explain any of the other variances? Give examples The direct materials price variance indicates that DDC paid efficiency variance) for brass than they had planned. If this is because they purchased a quality brass, it ma Choose from any list or enter any number in the input fields and then continue to the next question. ASUS VivoBook Ethan Thomas is a cost accountant and business analyst for Damask Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labour. Thomas fools that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon kilograms of materials used. (Click the icon to view the standards.) (Click the icon to view the actual results for April.) Required c. The direct manufacturing labour price variance is d. The direct manufacturing labour efficiency variance is e. The variable manufacturing overhead spending variance is f. The variable manufacturing overhead efficiency variance is g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Thomas use any of the variances to help explain any of the other variances? Give examples. The direct materials price variance indicates that DDC paid efficiency variance). for brass than they had planned. If this is because they purchased a quality brass, it may explain why they used t brass than expected (leading to a(n) material In turn, since variable manufacturing overhead is assigned based on kilograms of materials used, this directly led to the time to produce the doorknobs than expected (the direct labour efficiency variance) Finally, the Choose from any list or enter any number in the input fields and then continue to the next question variable overhead efficiency variance. The purchase of this quality of brass may also explain why it took labour direct labour price variance could imply that the workers who were hired were experienced than expected, which could also be related to the direct material and direct labour efficiency variances W E R ASUS VivoBook 5 U Y 8 9 P