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Part III. Mini-Case Big Drug Company Variance Analysis. Hint: Look at the Chapter 5 Units 5.1 and 5.2 and Chapter 6. This is very similar to the SCC Mini-Case on Blackboard. The SCC Division of the Big-Drug Company uses standard costing to help control their production costs. The division's main product is a pharmaceutical product that comes in a multidose package. The standard variable costs per package are given below: Direct materials (chemical ingrodiens 2.5 monce it 51.ke per dunce) Direst materials (packagies 1 package poose te st 28 per pok bape pioce) Diroct labor co.29 hour is 525.00 per hoer) Variable ovcthead (55 00 per dirpet labor hood) Fiven wrrthad i55 so per direct later husel During the most recent month, 70,000 packages of the product were produced. Other salient information related to the production of the 70,000 packages follows: Required: For questions 17-25 compute each of the following variances indicating both the dollar amount and whether the amount is favorable (F) or unfavorable (U). If a variance is zero, please input zero for the dollar amount and leave the F and U columns blank. Dellur Aasetant FU 17. DM chcmical purchase price variance 18. DM chemical efficiency (quamtity) varance 19. DM pockaging purchase prise variance. 20 DM pockaging efficiency (quantidy) variance 21 Direct Lahor rake variance 22 Direct Labor eficichey variance 23 The variable evertocid apending variance 24, The variable overhead efficiency wariance 25 The fixed overhead spending variasce Extra credit: What is the denominator in hours? 2 Part III. Mini-Case Big Drug Company Variance Analysis. Hint: Look at the Chapter 5 Units 5.1 and 5.2 and Chapter 6. This is very similar to the SCC Mini-Case on Blackboard. The SCC Division of the Big-Drug Company uses standard costing to help control their production costs. The division's main product is a pharmaceutical product that comes in a multidose package. The standard variable costs per package are given below: Direct materials (chemical ingrodiens 2.5 monce it 51.ke per dunce) Direst materials (packagies 1 package poose te st 28 per pok bape pioce) Diroct labor co.29 hour is 525.00 per hoer) Variable ovcthead (55 00 per dirpet labor hood) Fiven wrrthad i55 so per direct later husel During the most recent month, 70,000 packages of the product were produced. Other salient information related to the production of the 70,000 packages follows: Required: For questions 17-25 compute each of the following variances indicating both the dollar amount and whether the amount is favorable (F) or unfavorable (U). If a variance is zero, please input zero for the dollar amount and leave the F and U columns blank. Dellur Aasetant FU 17. DM chcmical purchase price variance 18. DM chemical efficiency (quamtity) varance 19. DM pockaging purchase prise variance. 20 DM pockaging efficiency (quantidy) variance 21 Direct Lahor rake variance 22 Direct Labor eficichey variance 23 The variable evertocid apending variance 24, The variable overhead efficiency wariance 25 The fixed overhead spending variasce Extra credit: What is the denominator in hours? 2