Kyler manufactures coffee mugs that it sells 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 59,800 coffee mugs per month: other companies for customizing with their own logos. Kyler prepares flexible a. There were beginning or ending inventory balances. All expenditures were on view the cost data. (Click the icon account. b. Actual production and sales were 62,500 coffee mugs. I cost of $0.17 per lb. d. Actual direct labor usage was 198.000 minutes at a total cost of $29.700. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Actual overhead cost was $5,940 variable and $34,560 fixed. Selling and administrative costs were $110,000. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, an FOH fixed overhead: SC standard cost; SQ standard quantity.) e Formula Variance X AData Table Direct materials cost variance (AC SC) x AQ - (AC-SC) x AQ Direct labor cost variance 0.2 lbs Direct Materials 0.25 per lb) 0.05 (3 minutes@S 0.12 per minute) 0.36 Direct Labor Manufacturing Overhead: 3 minutes@S 0.04 per minute) $ Variable 0.12 0.42 0.54 3 minutes@S 0.14 per minute) Fixed 0.95 Total Cost per Coffee Mug