Lexi 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 300 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 Actual 10,300 Budget 10,000 $ 1,990,000 Variance 300 Favorable $91,900 Favorable $ 2,081,900 593.400 576,800 289,800 279.000 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 231,500 229.200 113,300 111,600 16,600 Unfavorable 10,800 Unfavorable 2,300 Unfavorable 1,700 Unfavorable 600 Unfavorable 32,000 Unfavorable 59,900 Favorable 43,400 42,800 1,271,400 1.239.400 810,500 750,600 Less fixed expenses 128,000 132300 4,300 Favorable B5,900 85.300 600 Unfavorable Fixed manufacturing overhead Fixed selling expenses Fixed administrative expenses Total fod expense Operating income 150.000 148.500 1,500 Unfavorable 363.900 366,100 (2.200) Favorable $ 446,600 $ 384,500 $ 62,100 Favorable Lexi picked 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 untavorable variances on the operating costs. Can you help me understand what's going on? Let me look into it and Pipet back to vou" Irvin rolled Lax picked 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 I'll get back to you" Irvin replied. Irvin gathered the following additional information about the month's performance . Direct materials purchased: 55,300 pounds at a total of 5 652,540 Direct materials used: 51,200 pounds Direct labor hours worked: 27.280 at a total cost of $ 300,168 Machine hours used: S2,000 . Irvin also found the standard cost card for a case of product. Standard Cost Standard Quantity 5.00 pounds 559.00 Standard Price $11.30 per pound 5 11.10 per DLH $ 4.50 per MH $260 per MH 2.60 DLH Direct materials Direct labor Variable overhead Fixed overhead 28.86 5 MH 22.50 5 MH 1300 Total standard cost per case S 123.36 (a-b) Calculate the direct material price variance and direct material quantity variance for the month. Of variance is zero, select "Not Applicable and enter for the amounts.) $ Direct material price variance Not Applicable Direct material quantity variance $ 1180.00 Favorable (c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to decimal places, eg. 1.525. variance is zero, select "Not Applicable and enter for the amounts) Direct labor rate variance $ Favorable Direct labor efficiency variance $ Unfavorable te-n Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (1f variance is zero, select "Not Applicable and enter for the amounts) Variable overhead spending variance Favorable Variable overhead efficiency variance $ Unfavorable le) Calculate the fixed overhead spending variance for the month. (1f variance is zero, select "Not Applicable and enter for the amounts) Favorable Fixed overhead spending variance