LO 4 8-25 Flexible-budget variances, review of Chapters 7 and 8. Eric Willi: Fixed manufacturing overhead business analyst for Diamond Design Company (DDC), which manufactures spending variance = $500 U DDC uses two direct-cost categories: direct materials and direct manufacturin manufacturing overhead is most closely related to material usage. Therefore, [ overhead to production based upon kilograms of materials used. At the beginning of the year, DDC budgeted annual production of 420,000 following standards for each doorknob: Input Cost/Doorknol Direct materials (brass) 0.3 kg @ $10/kg $ 3.00 Direct manufacturing labour 1.2 hours @ $17/hour 20.40 Manufacturing overhead: Variable $5/kg x 0.3 kg 1.50 Fixed $15/kg x 0.3 kg 4.50 Standard cost per doorknob $29.40 Actual results for the month of April were as follows: Production 29,000 doorknobs Direct materials purchased 12,400 kg at $11/kg Direct materials used 8,500 kg Direct manufacturing labour 29,200 hours for $671,600 Variable manufacturing overhead $ 65,100 Fixed manufacturing overhead $158,000 Required 1. For the month of April, compute the following variances, indicating whether each is favourable unfavourable (U): a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labour price variance d. Direct manufacturing labour efficiency variance e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance Fival manufacturing marhead enandinn varianma