MANAGERIAL ACCOUNTING DISCUSSION PROBLEM 14 MANUFACTURING COST VARIANCE ANALYSIS Buchanan Manufacturing Company manufactures the worldwide acclaimed product called "Admiro". Admiro has the following standards for production of one unit of output. Direct Materials Direct Labor Machine Hours 6 liters at $1.25 per liter 4 hours at $9.00 per hour 2 hours Manufacturing overhead is applied to production on the basis of machine hours used. The variable manufacturing overhead rate is $5.50 per machine hour and the fixed manufacturing overhead rate is $8.00 per machine hour. The fixed manufacturing overhead was based upon an expected normal capacity of 30,000 machine hours. During the month of April, the company manufactured 14,000 units of Admiro. The actual results of production are provided below. Direct Materials Purchased and Used Direct Labor Machine Hours Actual Total Variable Manufacturing Overhead Actual Total Fixed Manufacturing Overhead 86,500 liters at a total cost of $ 116,775 54,900 hours at a total cost of $ 502,335 28,500 hours $ 149,575 S 218,500 REQUIRED: Compute the following manufacturing cost variances for Buchanan Manufacturing Company for the month of April. (a) Direct materials price variance. (b) Direct materials quantity variance. Direct labor rate variance. Direct labor efficiency variance. Variable manufacturing overhead spending variance. Variable manufacturing overhead efficiency variance. Fixed manufacturing overhead spending variance. (h) Fixed manufacturing overhead volume variance. (d)