pleased to see a small variance on the income statement after the trouble the company had been having in controlling manufacturing costs. She noted that the $19,821 overall manufacturing variance reported last period was well below the 3% limit that had been set for variances. The company produces and sells a single product. The standard cost card for the product follows: Standard Cost Card-Per Unit Direct materials, 4 metres at $2.70 per metre 10.80 Direct labour, 1.7 direct labour hours at $10.5 per direct labourhoor 17.85 Variable overhead, 1.7 direct labour hours at $2.8 per direct labour-hour 4.76 10.20 Fixed overhead, 1.7 direct labour-hours at $6 per direct labour hour Standard cost per unit 43.61 w The following additional information is available for the year just completed: o. The company manufactured 22.000 units of product during the year. b. A total of 86,990 metres of material was purchased during the year at a cost of $2.90 per metre. All of this material was use manufacture the 22,000 units. There were no beginning or ending inventories for the year c. The company worked 38,600 direct labour-hours during the year at a cost of $10.30 per hour. d. Overhead cost is applied to products on the basis of standard direct labour-hours. Data relating to manufacturing overhead costs follow: Denominator activity level (direct labour-hours) Budgeted fixed overhead costs (from the flexible budget) Actual fixed overhead costs Actual variable overhead costs 5 $ $ 36,900 221,400 219,800 109,590 Required: 1. Compute the direct materials price and quantity variances for the year. (Indicate the effect of each variance by selecting for favorablo, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance Matenals quantity variance 2. Compute the direct labour rate and efficiency variances for the year. (Indicate the effect of toch vorionce by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect ( e., zero variance).) Labour rate variance Lisbour officiency variance 3. For manufacturing overhead, compute the following a. The variable overhead spending and efficiency variances for the year, (Indicate the effect of each variance by selecting "F" favorable, "U" for unfavorable, and "None" for no effect (ie.. zero variance).) Variable overhead spending variance Variable overhead officiency variance ho 4. (WILL BE ANSERED IN QUESTION Standard Cost Vorlonces Part II) Based on the analysis you completed in Q1, Q2 and Q3 do you think that everyone should be congratulated for a job well done? Explain which areas are a concern, who is responsible and what next steps would you recommend for the company