Juda manufactures coffee mugs that it sells to other companies for customizing with their own logos. Juda prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee is based on static budget volume of 60,200 coffee mugs per month: E: (Click the icon to view the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct actual quantity: FOH = fixed overhead; SC = standard cost; SQ = standard quantity) Variance Direct materials cost variance Direct labor cost variance = = Formula (AC - SC) XAQ A (AC - SC) XAQAN - 0 Data Table * More Info $ 0.05 0.30 Direct Materials ( 0.2 lbs @ $ 0.25 per lb) Direct Labor ( 3 minutes @ $ 0.10 per minute) Manufacturing Overhead: Variable (3 minutes @ $ 0.06 per minute) $ Fixed (3 minutes @ $ 0.13 per minute) Total Cost per Coffee Mug a. There wer account. b. Actual pro c. Actual dire d. Actual dire e. Actual ove f. Selling and 0.18 0.39 $ 0.57 0.92 Print Done Question He Juda prepares cost of a coffee mug Actual cost and production information for July 2018 follows: A (Click the icon to view actual cost and production information.) Read the requirements. terials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost: AL * More Info There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,900 coffee mugs. c. Actual direct materials usage was 10,000 lbs. at an actual cost of $0.17 per ib. d. Actual direct labor usage was 202,000 minutes at a total cost of $24,240. e. Actual overhead cost was $11,110 variable and $29,690 fixed. f. Selling and administrative costs were $115,000. Print Done Actual cost and production information for July 2018 follows: (Click the icon to view actual cost and production information.) Read the requirements. abor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations use Requirements Compute the cost and efficiency variances for direct materials and direct labor. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Juda intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Print Done