Mcknight manufactures coffee mugs that it sells to other companies for customizing with their own logos$.$ Mcknight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of $59,700$ coffee mugs per month:

$($Click the icon to view the cost data.$)$

Actual cost and production information for July $2024$ follows:

$($Click the icon to view actual cost and production information.$)$

Read the reguirements.

Requirement $1.$ Compute the cost and efficiency variances for direct materials and direct labor. actual cost, $AQ=$ actual quantity; FOH$=$ fixed overhead; $SC=$ standard cost; $SQ=$ standard quantity.$)$

Data table

$\backslash$table$[[$Direct Materials $(0\mathrm{.}2$ lbs@ $50\mathrm{.}25$ per lb$),,,50\mathrm{.}05],[$Direct Labor $(3$ minutes@ $$0\mathrm{.}12$ per minute$),,,0\mathrm{.}36],[$Manufacturing Overhead:,,,$],[$Variable $(3$ minutes @ $$0\mathrm{.}06$ per minute$),,0\mathrm{.}18,],[$Fixed$(3$ minutes@$$0\mathrm{.}14$ per minute$),,0\mathrm{.}42,0\mathrm{.}80],[$Total Cost per Coffee Mug,,,$5,1\mathrm{.}0$