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Carol's Dress Shop produces high quality formal dresses. In January 2019 they produced 17,000 dresses. For the month of January, the following standard and actual cost data are available. The normal monthly capacity of the company is 30,000 direct labor hours. All material purchased in January was used in January production. Standard per Dress Actual Direct materials 5.0 yards @ $8.00 per yard $660,000 for 80,000 yards Direct labor 1.5 hours @ $15.00 per hour $384,000 for 24,000 hours Overhead 1.5 hours @ $5.50 per hour $110,000 fixed overhead (fixed $3.40; variable $2.10) $52,000 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs are $102,000 per month and budgeted variable overhead costs are $63,000 per month. Required 1. Calculate the direct materials price variance for January. Label the variance as favorable or unfavorable. 2. Calculate the direct materials quantity variance for January. Label the variance as favorable or unfavorable. 3. Calculate the direct labor rate variance for January. Label the variance as favorable or unfavorable. 4. Calculate the direct labor efficiency variance for January. Label the variance as favorable or unfavorable. 5. Calculate the variable overhead spending variance for January. Label the variance as favorable or unfavorable. 6. Calculate the variable overhead efficiency variance for January. Label the variance as favorable or unfavorable. 7. Calculate the fixed overhead spending variance for January. Label the variance as favorable or unfavorable. 8. Calculate the fixed overhead production volume variance for January. Label the variance as favorable or unfavorable. 9. Which of the variances should be investigated if management considers a variance of more than 5% from standard to be significant? 10. Provide a discussion of the tradeoffs that are most likely to exist between the direct material and direct labor variances