Holt Company has the following standards per finished unit for its product: Direct materials 2 lbs. @ $3.50 per lb. $ 7.00 Direct labor 1.5 hrs. @ $12.00 per hr. 18.00 Manufacturing overhead: Variable 1.5 Direct labor Hrs. @ $4.00 6.00 Fixed 1.5 DLH @ $6.00 per DLH 9.00 Total standard cost per unit $40.00 Results for October were: Budgeted units of production Actual units produced Direct materials purchases Direct materials used in production Direct labor incurred Actual variable overhead Budgeted fixed overhead Actual fixed overhead 5,000 5,200 12,000 lbs. @ $3.75 per lb. 9,800 lbs. 8,000 hrs. @ $11.80 per hr. = $94,400 $27,300 $ ? $47,300 a. Compute the total budgeted fixed overhead. (Hint: The FOH rate was calculated by dividing budgeted FOH by budgeted DLH, so use the rate to back in to the budgeted FOH.) b. Prepare a flexible budget analysis for October: 1. Compute the static budget amounts for direct materials, direct labor, variable and fixed overhead. (Hint: Based on budgeted volume and budgeted rates) 2. Compute the flexible budget amounts for direct materials, direct labor, variable and fixed overhead. (Hint: Based on actual volume and budgeted rates) 3. Compute the sales volume variances and indicate For U. (Hint: Compare static and flexible budgets.) 4. Compute the flexible budget variances and indicate For U. (Hint: Compare flexible budget to actual.) c. What is the standard quantity of materials allowed for actual production (SQA)? d. What is the standard labor hours allowed for actual production (SQA)? e. Compute the following variances for October: 1. Direct materials price variance (based on quantity purchased) 2. Direct materials efficiency variance 3. Direct labor price variance 4. Direct labor efficiency variance f. Prepare journal entries to record the following the transactions and variances under a standard costing system: 1. Materials purchases 2. Materials used in production 3. Direct labor