Prepare a very detailed manufacturing cost variance analysis (e.g., calculate the material price variance and quantity variance; the labor rate variance and efficiency variance; the variable overhead rate variance and efficiency variance; and the fixed manufacturing overhead budget variance and volume variance). All variances should be marked with either an F for favorable or U for unfavorable. You must complete this part in Excel and show your calculations

Actual Results Flexible Budget Activity Variances Revenue & Spending Variances 324,000 F Planning Budget $ 6,000,000 Sales $6,156,000 $6,480,000 480,000 U Less V.C. Direct Materials 3,018,600 221,400 F 3,240,000 240,000 U Exhibit A: Budgeted (Standard) Costs Variable costs per bay Direct materials (1.2 pounds at $5 per pound of raw almonds) Direct labor (0.05 direct labor hour at $20 per hour) Variable mfy, overhead (0.05 direct labor hour at $8 per hour) Selling and administrative expenses Fixed costs per year: Mfy, overhead Selling and administrative expenses $6 $1 $0.40 $0.60 3,000,000 500,000 Direct Labor 550,800 10,800 U 540,000 40,000 U V-MOH 272,160 56,160 U 16,000 U 200,000 216,000 324,000 V-S&A 270,000 54,000 F 24.000 U 300,000 CM $ 2.044,440 115,560 U $ $ 2.160,000 160.000 F $ 2.000.000 $800,000 $450,000 Less F.C. F-MOH 768,000 None 800,000 Budgeted Number of Bays Sold: 500.000 F-S&A 32,000 F 5.000 U 88,560 U 455,000 821,440 800,000 450.000 910,000 None 450,000 750,000 NOI $ $ 160,000 F $ Exhibit B: Aldrin Inc. Income Statement $6,156,000 3,018,600 550.800 272,160 Sales (540,000 bays produced and sold at $11.40 per bag) Less Variable Costs: Direct materials (702,000 pounds at $4,30 per pound) Direct labor (32,400 direct labor hours at $17 per hour) Variable manufacturing overhead Variable selling and administrative costs Contribution margin Less Fixed Costs: Fixed manufacturing overhead costs Fixed selling and administrative costs Net operating income 270.000 2,044,440 768.000 455.000 $821,440 Actual Number of Bags Sold: 540,000