Question 1 The cost accountant and business analyst for Dapper Design Company (DDC), which manufactures expensive brass vases, provides the following information about their planning & control activities. DDC uses two direct cost categories: direct materials and direct manufacturing labor. The company sets predetermined overhead rates on the basis of direct labour hours. Direct materials (brass)/Unit Direct manufacturing labor/Unit Annual Manufacturing overhead: Variable (Budgeted VOHD) Fixed (Budgeted FOHD) Total budgeted direct labour hours Planned production (units): PVOHD Rate/DLH Actual results for 2019 were as follows: Input 2.5 lbs. @ $5/lb. 0.5 hours @ $28/hr. $ 210,000 490,000 35,000 vases Production 68,000 vases Direct Labour hours used 35,600 Variable manufacturing overhead $222,500 Fixed manufacturing overhead $486,500 Requirements: 1.) For 2019, compute the variances listed below and indicate whether each variance if favourable (F) or unfavorable (U). (e) Variable manufacturing overhead spending variance (f) Variable manufacturing overhead efficiency variance (g) Production volume variance (h) Fixed manufacturing overhead spending variance 2.) Provide 2 plausible reasons for each of the variances. Marks 3 3 3 1 8