Normal volume per month is 504,000 standard labor hours, or 28,000 units. Cap It Company's July 20X8 static budget was based on normal volume. During July Cap It produced 30,000 units with records indicating the following: (10 points) 860,000 lbs. @ $16.85 per lb. 854,000 lbs. 544,000 hrs. @ $36.25 per hr. $ 11,020,000 $15,080,000 Direct materials purchased Direct materials used Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Required: Compute the following variances for the month of July 20X8. Indicate whether each is favorable or unfavorable. 1. Direct materials price variance-based on purchases ents for 2017 ad 2018 for the M ting The beginning inventory for 201 (10 polats) 2. Direct materials usage (efficiency) variance. 3. Direct labor rate variance 4. Direct labor efficiency variance 201 2018 150,000 140.000 $12 SS 52 5. Variable overhead efficiency variance 6. Variable overhead spending variance 7. Fixed overhead spending variance 8. Fixed overhead volume variance 260.000 9. Factory overhead spending variance 3-way analysis 10. Controllable variance 2-way analysis 7) The following are standards set up by the Cap It Company: Totals Inputs 29 lbs. @ $17 per Ib. 18 hrs. @ $36 per hr. Direct Materials Direct Labor Manufacturing Overhead: $493 648 396 Variable $22 per direct labor hour 540 Fixed Standard cost per unit $30 per direct labor hour $2,077 Normal volume per month is 504,000 standard labor hours, or 28,000 units. Cap It Company" July 20X8 static budget was based on normal volume. During July Cap It produced 30,000 ur with records indicating the following: (10 points) 860,000 Ibs. @ $16.85 per Ib. 854,000 Ibs. 544,000 hrs. @ $36.25 per hr. $ 11,020,000 $15,080,000 Direct materials purchased Direct materials used Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Required: Compute the following variances for the month of July 20X8. Indicate wheth each is favorable or unfavorable. 1. Direct materials price variance-based on purchases 2. Direct materials usage (efficiency) variance. incone 3. Direct labor rate variance 4. Direct labor efficiency variance 2017 5. Variable overhead efficiency variance 2018 40000 6. Variable overhead spending variance $12 7. Fixed overhead spending variance 8. Fixed overhead volume variance 30.000 9. Factory overhead spending variance - 3-way analysis 10. Controllable variance - 2-way analysis