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5. Variance Analysis (10pts): Exterminate, Inc. has provided the following standards data concerning one of their products. Assume that OH costs are applied to products based on direct labor (DL) hours. Inputs Standard quantity or Standard price or rate standard hours of input per unit of input per unit of output Direct materials 4.0 liters $7.25 per liter Direct labor 2.2 DL hours $18.00 per DL hour Variable overhead 2.2 DL hours $2.50 per DL hour Fixed overhead 2.2 DL hours $4.00 per DL hour The standard OH rate for both Variable OH ($2.50 per DL hour) and Fixed OH ($4.00 per DL hour) is based on an expected volume of 85% of the factory's capacity of 8,000 units per month. Per the firm's flexible OH budget, the Budgeted OH costs per month at the 75%, 85%, and 95% capacity level are: Operating levels (% of capacity) 75% 85% 95% Units of production 6,000 6,800 7,600 Standard DL hours 3,200 14,960 16,720 Budgeted OH Costs: Variable OH $33,000 $37,400 $41,800 Fixed OH $59,840 $59,840 $59,840 Total OH $92,840 $97,240 $101,640 The firm reported the following actual costs for the month of May when it operated at 75% of capacity, producing 6,000 units. Actual output 6,000 units Direct materials purchased and used 400 liters Actual cost of materials purchased $173,160 Actual direct labor hours used 13,600 Actual direct labor cost $224,400 Actual variable overhead cost $34,680 Actual fixed overhead cost $59,000 a. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U). C. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). d. Calculate the DL rate variance. Indicate whether this variance is favorable (F) or unfavorable (U). e. Calculate the DL efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U). f. Calculate the DL cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the Variable OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U). h. Calculate the Fixed OH Volume Variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the Fixed OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the Total OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U)