Kemp Isbles Incorporated $($ KII makes picnic tables of $24$ planks of treated pine. It sells the tobles to large retall discount stores

such os Wolmort. After reviewing the following dato genersted by KTI's chief accountant, the compsny president, Arisne Derwin,

expressed concern that the total manufacturing cost wss more than $$0\mathrm{.}7$ million above budget $).$

Ms$.$ Darwin asked Conrad Pearson, KTl$\text{'}$s chief accountant, to explain what caused the incresse in cost$.$ Mr$.$ Pearson responded thet

things were not $ss$ bod ss they seemed. He noted that port of the cost variance resulted from making snd selling more tables than had

been expected. Making more tables naturally couses the cost of materisls and labor to be higher. He explained that the flexible budget

cost variance was less then $$0\mathrm{.}7$ million. Specifically, he provided the following comporison.

Based on this information, he argued that the relevant variance for performance evaluation was only $$599,100($ $$5,211,400-$

$$4,612,300).$ Ms$.$ Darwin responded, "Only $$599,100!$ I consider that a very significant number. By the end of the day, I want a full

explenation as to what is cousing our costs to increase."

Required

a$-1.$ Bused on the given information, determine the total materials cost variance and the price and usage variances. Assuming that the

vorisnces are on sppropriste indicator of couse.

a$-2.$ Based on the given information, determine the total labor cost variance and the price and usage variances. Assuming that the

vorisnces ore on sppropriste indicator of couse.

a$-3.$ Determine the amount of the fixed cost spending and volume variances.

Complete this question by entering your answers in the tabs below.

Req A$1$

Based on the given information, determine the total materials cost variance and the price and usage variances. Assuming that

the variances are an appropriate indicator of cause.

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.$

zero variance$).$

Please solve for required A$1,$ A$2,$ and A$3,$ thanks!! :)