Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor hours (DLH). At the beginning of 2014 , Company adopted the following standards for its manufacturing costs:

Input, Cost per Output Unit,, Direct materials, 5 lbs. at $5 per lb.,, $25.00, Direct manufacturing labor, 5 hrs. at $18 per hr., ,90.00, Manufacturing overhead:,,,, Variable, $6 per DLH, ,30.00, Fixed ,$8 per DLH, ,40.00, Standard manufacturing cost per output unit,,, $185.00,

The denominator level for total manufacturing overhead per month in 2014 is

36000 direct manufacturing labor-hours. flexible budget for January 2014

was based on this denominator level. The records for January indicated the following:

Direct materials purchased	41,000 lb. at $5.25 per lb.
Direct materials used	38,500 lb.
Direct manufacturing labor	37,500 hrs. at $17.60 per hr.
Total actual manufacturing overhead (variable and fixed)	$800,000
Actual production	7,800 output units

Requirements

1. Prepare a schedule of total manufactoring costs for the 7800 output units in January 2014.

2. For the month of January 2014, compute the following variances, indicating whether each as favorable (F) or unfavorable (U):

a. Direct materials price variance, based on purchases

b. Direct materials efficiency variance

c. Direct manufacuring labor price variances

d. Direct manufacturing labor efficiency variance

e. Total manufacturing overhead spending variance

f. Variable manufacturing overhead efficiency variance

g. Production volume varinace.