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 320 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 10.250 $1,933.900 Budget 9.930 $1,856.900 Variance 320 Favorable $77,000 Favorable 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 foxed expenses Fioved manufacturing overhead Fixed selling expenses Foxed administrative expenses Total fixed expense Operating income 557,073 265,776 293.017 92,478 41,448 1,239.792 694,108 546,150 258,180 278.040 89.370 39.720 1,211460 645,440 10,923 Unfavorable 7,596 Unfavorable 4,977 Unfavorable 3,108 Unfavorable 1,728 Unfavorable 28.332 Unfavorable 48.668 Favorable 110.223 69,014 128.991 109 230 69,510 129.090 307,830 993 Unfavorable (496 Favorable! (199 Favorable! 298 Unfavorable $48,370 Favorable 306,128 $385.980 $337.610 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 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: 101,296 pounds at a total of $557,073 Direct materials used: 101,286 pounds Direct labor hours worked: 26,315 at a total cost of $265,776 Machine hours used 40,663 Irvin also found the standard cost card for a case of product. 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 $2.73 per MH Standard Quantity 10 pounds 2.58 DLH 4 MH 4MH Standard Cost $55 25.80 28.00 10.92 $119.72 (a-b) Calculate the direct material price variance and direct material quantity variance for the month. (f variance is zero, select "Not Applicable and enter Ofor the amounts.) $ Direct material price variance $ Direct material quantity variance Ic-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month (Round answers to decimal places, eg. 1.525. If variance is zero, select "Not Applicable and enter Ofor the amounts) Direct labor rate variance $ $ Direct labor efficiency variance le-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance is zero, select "Not Applicable and enter for the amounts.) Variable overhead spending variance $ $ Variable overhead efficiency variance (g) Calculate the fixed overhead spending variance for the month of variance is zero, select "Not Applicable and enter for the amounts.) Fored overhead spending variance e Textbook and Media Prepare a performance report that will assist Lexi in evaluating her efforts to control production costs. (If variance is zero, select "Not Applicable and enter for the amounts.) Price/Rate/Spending Variance Quantity/Efficiency Variance $ Direct materials Direct labor Variable overhead Foxed overhead Total $ Prepare a performance report that will assist Lexi in evaluating her efforts to control production costs. (If variance is zero, select "Not Applicable and enter for the amounts.) Price/Rate/Spending Variance Quantity/Efficiency Variance $ V $ als V le ad V V > ad $ eTextbook and Media 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