Lido Company's standard and actual costs for the most recent period, are given below: Lido uses the following manufacturing standards Per Unit: Direct Material: 2metres @$1.56 per metre Direct Labour : 1.25Hours @ $16.00 per hour MOH: Variable: 1.25 Hours @ $3.45 per DLH - Fixed: 1.25 Hrs @$10.00 based on capacity to produce 1,000 units During the most recent period Lido provided the following details: Produced 950 Units Raw Material: - 2,500 metres of material were purchased at $1.45 per metre, and 2,000 metres were used Direct Labour: - 1,420 hours of labour were assigned to produce 950 units. Direct labour actual hourly rate was $16.65 Actual Variable Manufacturing Overhead - MOH: -$3.70 per labour hour.Direct Labour Hours-DLH as the COST DRIVER for overhead application. Actual Fixed Overhead amounted to $11,500 for the period Attached to this exam, is an Excel Spreadsheet with imbedded formulas designed to calculate the variances for: Direct Material - DM; Direct Labour - DL; Variable Manufacturing Overhead - MOH VC; Fixed Manufacturing Overhead - MOH FC All the Variances have been determined. Please do not attempt to submit the spreadsheet QUESTIONS Part I: Provide Journal Entries for: 1. The purchase and use of raw materials 2. Direct Labour Part II: Complete the following variance report and perform the analysis that follows Variance Analysis and Report Variances F U Direct Materials: - Price - Quantity Direct Labour - Rate - Efficiency Overhead - Variable: - Spending - Efficiency Fixed: - Budget - Volume Totals: QUESTIONS WHO? WHAT? WHY? Analysis (briefly): Identify any exceptions from the above and explain why you consider them important. Comment on the exceptions you have identified: Which variances will you seek more information on? Why? Who are the managers you will address in order to get answers?: What information will you be looking for? Why