Question 4 (20 marks) The Janet Fong Handiyade Jewelry (Janet) manufactures handcrafted jewelry. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of budgeted direct manufacturing labor hours per unit. Janet also allocates fixed manufacturing overhead to products on the basis of budgeted direct manufacturing labor hours per unit of product. The following are the company's budget data for the first quarter of 2019. Production output 3.000 units Direet manufacturing labor used for each unit of product 2 hours Variable manufacturing overhead cost per labor hour Fixed manufacturing overhead $504,000 $37 The actual manufacturing data in the quarter are as follow: Production output 2.800 units Direct labor hours 6,000 hours Variable manufacturing overhead $210,000 Fixed manufacturing overhead $554.000 Required: (a) Compute the flexible, budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. (5 marks) (b) Compute the spending variance and production volume variance for (5 marks) fixed manufacturing overhead. () Comment on the fixed manufacturing overhead spending variance (5 marks) and production volume variance in (b) above. What action should Janet take to deal with the production volume variance? (d) List FIVE benefits of budget that can help Janet to manage the business. (5 marks) (Indicate favourable variance with 'F' and unfavourable variance with U') ACT B313F (1900) Page 7 of 9