Maple Leaves Inc. produces portable ice rinks. The standard cost for one rink is as follows: Standard Standard Quantity or Hours Direct materials Direct labour 1.00 kilograms 0.90 hours Standard Price or Rate $4.00 per kilogram Cost 3.7.20 $6.00 per hour 5:40 Variable manufacturing overhead 0.50 machine-hours $2.00 per machine-hour 1.00 Total standard cost $13.60 The plant has been having problems for some time, as is shown by its December income statement when it produced and sold 15.100 rinks; the normal amount is 15.250 rinks per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15,100 rinks) $455,000 5453,000 Less: Variable expenses: Variable cost of goods sold 205,360 221,092 Variable selling expenses 20,100 20,100 Total variable expenses 225,460 241,192 Contribution margin 227,540 211,808 Less: Fixed expenses Manufacturing overhead 110,000 118,000 Selling and administrative 84,560 4,566 Total fixed expanses 202 560 203,560 Net Income $ 24,980 $ 9,248 "Contains direct materials, direct labout and variable manufacturing overhead. Madison Eastwood, the general manager wants to get things under control. She needs information about December operations since the Income statement showed that the problem could be due to the variable cost of goods sold. Eastwood learns the following about operations and costs in December a. 30.200 kilograms of materials were purchased at a cost of $3.90 per kilogram, b. 27.500 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored) Next > Required: 1. Compute the following variances for December: a. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "B unfavourable, and "None" for no effect (i.e., zero variance).) Material price variance Material quantity variance b. Direct labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, IU" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance c. Variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie., zero variance).) Variatie overhead spending variance Variable overhead efficiency variance