labor, and overhead costs? Why? ne a good job or a poor job controlling materials, Describe how Morton's managers can bencfit from the standard cost 4. p23-27A Computing standard cost variances and rempany Hear Smart manufactures headphone cases. During September 201 produced and sold 105,000 cases and recorded the following cost Lea ng to management 8, the compan Standard Cost Information Quantity Cost Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead ($28,500 for static budget volume ot 2 parts $0.15 per part 0.02 hours 0.02 hours 8.00 per hour 10.00 per hour 95,000 units and 1,900 hours, or $15 per hour) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (209,000 parts@$0.20 per part) 41,800 13,040 9,000 (1,600 hours @ $8.15 per hour) 26,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3. Hear Smart's management used better quality materials during September. Discuss the trade-off between the two direct material variances , 5,6 P23-28A Computing and journalizing standard cost variances wore that it sells to other companies for customizing with