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QUESTION 1 Stratton Corp (SC) produces a popular brand of garden gnomes which it sells to wholesalers at a price of $75. SC uses standard

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QUESTION 1 Stratton Corp (SC) produces a popular brand of garden gnomes which it sells to wholesalers at a price of $75. SC uses standard costing and has determined the following standard costs for a budgeted production level of 5,000 units: Direct materials Direct Labour Variable MOH Fixed MOH 3.5 kg $2.40 per kg 2 hours a $10 per DLH 2 hours $8.5 per DLH 2 hours a $10 per DLH In the most recent month, a total of 4,800 units were produced and sold Additional Information 1.SC purchased 18.000 kgs of direct materials during the month at a total cost of 545.000. It had 800 Kgs on hand at the beginning of the month, and it ended the month with 1,000 kg 2. During the month, SC incurred 9.400 direct labour hours at a total cost of $150,800 2. The total manufacturing overtient during the month was $180,000, of which variable manufacturing overhead consisted of $12,250. Required Calculato the following variance and not them in the banks. Do not include brackets in your response. Space has been provided below to show calculation. If desired This is optional Materials price variance was (State for tavourable, U for untuvourable Materials quantity variance wa (State Ftor favourablo. U for untavourable Calculate the following variances and not them in the banks. Do not include brackets in your response. Space has been provided below to show calculations, if desired This is optional Fixed overhead budget variance was $ (State F for favourable. U for Fixed overhead volume variance was $ (State F for favourable, U for unfavourable) QUESTION 3 Prepare the journal entry(entries) necessary to record the variances calculated in Question 1 part a) above. Considering the variance calculated in Question 1, Identity which variance would be most important to investigate further Other than an incorrect standard, provide a possibile explanation for the variance TTT Arial 3 (12)

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