or customizing with their own logos. McKnight prepares turing costs. The standard unit cost of a coffee mug is based Actual cost and production information for July 2018 follo (Click the icon to view actual cost and production info Read the requirements et materials and e the cost variae A Data Table unfavorable $ 0.05 0.30 Direct Materials (0.2 lbs @ $ 0.25 per lb) Direct Labor (3 minutes @ $ 0.10 per minute) Manufacturing Overhead Variable (3 minutes @ $ 0.04 per minute) $ Fixed (3 minutes @ $ 0.14 per minute) Total Cost per Coffee Mug 0.12 0.42 S 0.54 0.89 Print Done ] and then click Check Answer: R More Info uirements direct labor i More Info a. There were no beginning or ending inventory balances. All expenditures were on account b. Actual production and sales were 62,900 coffee mugs c. Actual direct materials usage was 10,000 lbs at an actual cost of $0.17 per lb, d. Actual direct labor usage was 202,000 minutes at a total cost of $24.240. e. Actual overhead cost was $5,050 variable and $35 450 fixed f. Selling and administrative costs were $98,000. Print Done Actual cost and production information for July 2018 follows click the icon to view actual cost and production information) 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 60 200 coffee mugs per month (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Begin with the cost variances Select the required formulas compute the cost variances for direct materials and direct labor and identify whether each yarances favorable (For unfavorable (U) (Abbreviations used AC actual cost AD actual quantity. FOH faced overhead, SC standard cost SQ = standard quality Varance Direct materials cost variance Direct labor cost variance Actual cost and production (Click the icon to view 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 60,200 coffee mugs per month (Click the icon to view the cost data.) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct lal unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity, FOH = fixed overhead; SC = standard cost Formula Variance - Direct materials cost variance Direct labor cost variance (AC-SC) XAQ (AC - SC) XSQ (AQ - SQ) x AC (AQSQ SC Actual FOH Allocated FOH Actual FOH Budgeted FOH Bugeted FOH - Allocated FOH cost and efficiency variances for direct materials and direct labor. 5. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each vi uns used AC = actual cost, AQ = actual quantity: FOH = fixed overhead, SC = standard cost, SQ = standard quantity.) Formula Variance