Problem 1 (25 points). Oboe Corporation has the attached standards for production of one of its major products. During the current period, the company produced 43,000 units with the attached actual results REQUIRED: Compute the following manufacturing cost variances, showing all computations Round all total dollar calculations for the variances to the nearest whole dollar (a) (b) Direct materials price variance. Direct materials quantity variance. Direct labor price (rate) variance Direct labor quantity (efficiency) variance. Variable manufacturing overhead spending (price) variance. Variable manufacturing overhead efficiency (quantity) variance. Fixed manufacturing overhead spending (price) variance. Fixed manufacturing overhead volume variance (c) (d) (e) (g) (h) OBOE CORPORATION STANDARDS FOR PRODUCTION OF ONE OF MAJOR PRODUCTS Direct materials (2 pounds at S0.25 per pound) S 0.50 Direct labor (0.20 hours per unit) 120 Variable manufacturing overhead (0.20 hours per unit) 0.50 Fixed manufacturing overhead (based on normal capacity of 40,000 hours) Total standard cost per unit 2.00 S 4.20 OBOE CORPORATION ACTUAL RESULTS FOR PRODUCTION OF ONE OF MAJOR PRODUCTS FOR CURRENT PERIOD 87,000 pounds purchased and used at S0.275 per pound Direct materials 8,500 hours used at a total cost of $52,500 Direct labor Variable manufacturing overhead 22,300 Fixed manufacturing overhead 83,400