Lexd Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 260 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story. Budget Actual 10,250 $1,945,600 9,990 Variance 260 Favorable $77,500 Favorable $1,868,100 Cases produced and sold Sales revenue Less variable expenses Direct material Direct labor Variable manufacturing overhead Variable selling expenses Variable administrative expenses Total variable expense Contribution margin Less fixed expenses Fixed manufacturing overhead Fixed selling expenses Placed administrative expenses Total fixed expense Operating income 560,439 267,382 284,727 93,037 41,698 1,247,283 698,317 549,450 259,740 279,720 89.910 39,910 1,218,780 649,320 10,989 Unfavorable 7,642 Unfavorable 5,007 Unfavorable 3,127 Unfavorable 1,738 Unfavorable 28,503 Unfavorable 48,997 Favorable 110.889 69,431 129,670 309,990 $38,327 109,890 69.930 129,870 309,690 $339,630 999 Unfavorable (499 Favorable) (200 Favorable) 300 unfavorable $48,697 Favorable Le placed up the phone and called Irvin. "Irvin, I don't get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand what's going on?" "Let me look into it and 11 get back to you, Irvin replied. Irvin gathered the following additional information about the month's performance Direct materials purchased: 101,898 pounds at a total of $560,439 Direct materials used: 101,896 pounds Direct labor hours worked: 26,474 at a total cost of $267,382 Machine hours used: 40,909 Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per case Standard Price $5.50 per pound $10 per DLH $7 per MH $2.75 per MH Standard Quantity 10 pounds 2.60 DLH 4 MH 4MH Standard Cost $55 26.00 28.00 11.00 $120.00 (a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "Not Applicable and enter for the amou Direct material price variance Direct material quantity variance decimal places, 1,825. Ir variances rere select (C-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month (Round answers to and enter o for the amounts.) Direct labor rate variance Direct labor efficiency variance $ for the (e-t) calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (Il variance is zero, select "Not Applicable and enter Variable overhead spending variance Variable overhead efficiency variance "Not Applicable and ente (o) Calculate the fixed overhead spending variance for the month. ( Fixed overhead spending variance Price/Rate, Spending Vallance Quantity/Efficiency Variance Direct materials Direct labor Variable overhead Fixed overhead Total LINK TO TEXT LINK TO VIDEO LINK TO TEXT LINK TO VIDEO LINK TO TEXT LINK TO VIDEO LINK TO TEXT LINK TO VIDEO Based on your review of the performance report you prepared, do you think Lexi did a good job of controlling production expenses during the month? Click if you would like to Show Work for this question: Open Show Work