In order to properly track costs, Sweet Wave Bakery uses very stringent standard costs in evaluating efficiency. Management is working hard to make these costs precise, but they have not yet achieved this goal. Currently, they use the following standards: m m- Mil- -B_ Direct Labor Predetermined overhead rate based on direct labor hours $4.28 The January figures for purchasing, production, and labor are: The company purchased 229,000 pounds of raw materials in January at a cost of 78 a pound. Production used 229,000 pounds of raw materials to make 115,500 units in January Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $54,673 variable and $73,800 fixed. Material Lbs per unit X Price per lb. Flour 1.00 x $0.63 = $0.63 Sugar .75 X 1.00 = 0.75 Butter A X 0.88 = E Total M lbs m = $0.801Ib. Instructions Answer the following questions about standard costs. Type your responses with no commas. For the labor rates, use 2 decimal places A What is the materials price variance? Materials Price Variance: Actual Quantity x Actual Price Equals Standard Actual Quantityx Equals Price LESS: Favorable/Unfavorable Total + B. What is the materials quantity variance? Standard quantity: Units produced x Total pounds per unit Actual Standard X Equals Quantity Price Standard Standard X Equals Quantity Price LESS: Favorable/Unfavorable Total What is the total material C. variance? Actual x Actual Price Equals Quantity Standard Standard X Equals Quantity Price LESS: Favorable/Unfavorable TotalD. What is the labor price variance? Actual hours: Units produced x actual hours hint: 18min/60min = used actual hours used Actual Hours x Actual Rate Equals Standard Actual Hours X Equals Rate LESS: Favorable/Unfavorable Total E. What is the labor quantity variance? Standard hours: Units produced x standard hours worked Standard Actual Hours X Equals Rate Standard Standard X Equals Hours Rate LESS: Favorable/Unfavorable Total What is the total labor F. variance? Actual Hours x Actual Rate EqualsStandard Standard X Equals Hours Rate LESS: Favorable/Unfavorable Total G. What is the total overhead variance? Standard hours allowed: Units produced x .25 hours Overhead applied: Predetermined overhead rate x standard hours allowed Actual Overhead (Hint: variable+fixed) LESS: Overhead Applied Equals: Total Overhead * Favorable/Unfavorable variance