Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one unit of Carpex follow:

Standard Quantity

or Hours Standard Price

or Rate Standard

Cost

Direct materials $4\mathrm{.}30$ kilograms $ $1\mathrm{.}90$ per kilogram $ $8\mathrm{.}17$

Direct labour $0\mathrm{.}38$ hour $ $8\mathrm{.}00$ per hour $3\mathrm{.}04$

Variable overhead $0\mathrm{.}38$ hour $ $1\mathrm{.}30$ per hour $0\mathrm{.}49$

The budgeted fixed overhead cost is $$15,208$ per month. The denominator activity level of the allocation base is $874$ direct labour$-$hours.

During the most recent month, the following activity was recorded:

$9,400$ kilograms of material were purchased at a cost of $$2\mathrm{.}22$ per kilogram.

All of the material purchased was used to produce $2,300$ units of Zoom.

A total of $820$ hours of direct labour time was recorded at a total labour cost of $9,266.$

The variable overhead cost was $$1,640,$ and the fixed overhead cost was $$17,366.$

Required:

$1.$ Compute the direct materials price and quantity variances for the month. $($Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

$2.$ Compute the direct labour rate and efficiency variances for the month. $($Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

$3.$ Compute the variable overhead spending and efficiency variances for the month. $($Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Round "Efficiency variance" to $2$ decimal places.$)$

$4.$ Compute the fixed overhead budget and the volume variances for the month. $($Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

$5.$ Compute the underapplied or overapplied overhead for the month. $($Round intermediate calculations and round final answer to $2$ decimal places. Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$