Muddy Duck Manufacturing (MDM) Inc.'s costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead, both fixed and variable, is allocated to products on the basis of standard direct manufacturing labour hours (DMLH). At the beginning of 2017, MDM adopted the following standards for its manufacturing costs: Input Cost per Output Unit Direct materials 3kg @ $5 per kg $15 Direct manufacturing labour 5 hours @ $15 per hour 75 Manufacturing overhead: Variable $6 per DMLH 30 Fixed $8 per DMLH 40 Standard manufacturing cost per output unit $160 The denominator level for total manufacturing overhead per month in 2017 is 40,000 DMLH. MDM's flexible budget for February 2017 was based on this denominator level. The records for February indicate the following: Direct materials purchased = 25,000 kg at $5.20/kg Direct materials used = 23,100 kg Direct manufacturing labour = 40,100 hours at $14.60/hour Total actual manufacturing overhead (variable and fixed) = $600,000 Actual production = 7,800 output units Required: 1) Prepare a schedule of total standard manufacturing costs for the 7,800 output units in February 2017. (12 marks) 2) For February 2017, calculate the following variances, indicating whether each is favourable (F) or unfavourable (U): (28 marks total with 4 marks each) a. Direct materials rate variance, based on purchases. b. Direct materials efficiency variance. c. Direct manufacturing labour rate variance. d. Direct manufacturing labour efficiency variance. e. Total manufacturing overhead rate variance. f. Variable manufacturing overhead efficiency variance. g. Production-volume variance