Nathan Hopkins is a cost accountant and business analyst for Dandy Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories direct materials and direct manufacturing labor. Hopkins feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used (Click the icon to view the standards (Click the icon to view the actual results for April) Read the regulaments Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials Actual Input Qty. Budgeted Price Actual Costs Flexible Incurred Purchases Usage Budget Direct materials a. Direct materials price variance (based on purchases) is b. The direct materials officiency variance is Now complete the table for direct labor. Actual Costs Incurred Actual Input Qty. Budgeted Price Flexible Budget Direct Manuf. Labor c. The direct manufacturing labor price variance is d. The direct manufacturing labor efficiency variance is Next, complete the table for variable overhead (Abbreviation used Manuf = Manufacturing) Actual Costs Actual Input Qty. Flexible Allocated Incurred Budgeted Price Budget Overhead Variable Manuf. OH e. The variable manufacturing overhead spending variance is 1. The variable manufacturing overhead elliciency variance is Complete the table for fixed overhead. Actual Costs Incurred Same Budgeted Lump Sum Regardless of Output Level Flexible Budget Allocated Overhead Fbxed Manut, OH g. The production-volume variance is h. The fired manufacturing overhead spending variance is Requirement 2. Can Hopkins use any of the variances to hain explain any of the other variances? Glve examples The direct materials price variance indicates that DDC paid for brass than they had planned. If this is because they purchased a quality brass, it may explain why they used bress than expected leading to an) material efficiency variance) In turn, since valable manufacturing overhead is assigned based on pounds of materials used, this directly led to the varlable overhead efficiency variance. The purchase of this quality of brass may also explain why it took labor time to produce the doorknobs than compacted (tha direct labor afficiency variance) Finally, the experienced than expected, which could also be related to the direct labor price variance could imply that the workers who were hired were direct material and direct labor efficiency variances. Data table Data table At the beginning of 2020, DDC budgeted annual production of 410.000 doorknobs and adopted the following standards for each doorknob Input Cast/Doorknob Direct materials (brass) 03 lb at South $ 2.40 Direct manufacturing labor 1.2 hours at $20 hour 24.00 Variable manufacturing overhead S7/ 0.3 lb. 2.10 4.20 Fixed manufacturing overhead 514/1b. 0.3 lb. 5 32.70 Standard cost per doorknob Actual results for April 2020 were as follows: Production 34.000 doorknobs Direct materials purchased 12 100 lb at $9/b. Direct materials used 7,000 lbs Direct manufacturing labor 29.600 hours for $710,400 Variable manufacturing overhead 564.300 Fixed manufacturing overhead $155,000 Print Done Print Done Nathan Hopkins is a cost accountant and business analyst for Dandy Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories direct materials and direct manufacturing labor. Hopkins feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used (Click the icon to view the standards (Click the icon to view the actual results for April) Read the regulaments Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials Actual Input Qty. Budgeted Price Actual Costs Flexible Incurred Purchases Usage Budget Direct materials a. Direct materials price variance (based on purchases) is b. The direct materials officiency variance is Now complete the table for direct labor. Actual Costs Incurred Actual Input Qty. Budgeted Price Flexible Budget Direct Manuf. Labor c. The direct manufacturing labor price variance is d. The direct manufacturing labor efficiency variance is Next, complete the table for variable overhead (Abbreviation used Manuf = Manufacturing) Actual Costs Actual Input Qty. Flexible Allocated Incurred Budgeted Price Budget Overhead Variable Manuf. OH e. The variable manufacturing overhead spending variance is 1. The variable manufacturing overhead elliciency variance is Complete the table for fixed overhead. Actual Costs Incurred Same Budgeted Lump Sum Regardless of Output Level Flexible Budget Allocated Overhead Fbxed Manut, OH g. The production-volume variance is h. The fired manufacturing overhead spending variance is Requirement 2. Can Hopkins use any of the variances to hain explain any of the other variances? Glve examples The direct materials price variance indicates that DDC paid for brass than they had planned. If this is because they purchased a quality brass, it may explain why they used bress than expected leading to an) material efficiency variance) In turn, since valable manufacturing overhead is assigned based on pounds of materials used, this directly led to the varlable overhead efficiency variance. The purchase of this quality of brass may also explain why it took labor time to produce the doorknobs than compacted (tha direct labor afficiency variance) Finally, the experienced than expected, which could also be related to the direct labor price variance could imply that the workers who were hired were direct material and direct labor efficiency variances. Data table Data table At the beginning of 2020, DDC budgeted annual production of 410.000 doorknobs and adopted the following standards for each doorknob Input Cast/Doorknob Direct materials (brass) 03 lb at South $ 2.40 Direct manufacturing labor 1.2 hours at $20 hour 24.00 Variable manufacturing overhead S7/ 0.3 lb. 2.10 4.20 Fixed manufacturing overhead 514/1b. 0.3 lb. 5 32.70 Standard cost per doorknob Actual results for April 2020 were as follows: Production 34.000 doorknobs Direct materials purchased 12 100 lb at $9/b. Direct materials used 7,000 lbs Direct manufacturing labor 29.600 hours for $710,400 Variable manufacturing overhead 564.300 Fixed manufacturing overhead $155,000 Print Done Print Done