Kylar manufactures colfee mugs that it sells to other companies for customizing with their own Actual cost and production information for Juyy 2024 follows: logos. Kyler prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,900 coffee (i) (Clok the icon to view actual cost and production informationi) mugs per month: Read the Cilck the ioon to vew the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variancos. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whothor each variance is tavorable (F) or unfav (Abbreviations used: AC= actual cost: AQ = actual quantity, FOH= fixed overheod, SC= standard cost, SQ standard quantity.) Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbriniations actual cost, AC= actual quantity, FOH= fixed owerhead; 5C = Alandard cost; SQ = standard puantity? Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. 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. 4. 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. Kyler intentionally hired more highly skilled workers during July. How did this decision affect the cost variances? Overall, was the decision wise? Data table More info a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 62,600 coffee mugs. c. Actual direct materials usage was 10,000lbs. at an actual cost of $0.17 per lb. d. Actual direct labor usage was 199,000 minutes at a total cost of $31,840. e. Actual overhead cost was $3,980 variable and $36,920 fixed. f. Selling and administrative costs were $126,000