Read the following information on Variance Analysis and complete the assignment questions listed at the end of the reading. This should be completed in a group of 1-4 students. While everyone should work on the problem, only one copy per group needs to be submitted. The work may be handwritten or submitted as a clearly labeled Excel file. This activity needs to be completed in-class today. Tara Tahari is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses fwo direct-cost categories: direct materials and direct manufacturing labor. Tahari feels that manufacturing overhead is most closely related to direct labor hours. Therefore, DDC allocates manufacturing everhead to production based upon standard direct labor bours. At the beginning of 2022, DDC budgeted annual production of 420,000 doorknobs and adopted the following standards for each doorknob: Actual results for September 2022 were as follows: Some Formulas: MQVSPSQAQU MPV=AQSPAP LEV=SR SH AH L.RV =AHSRAR Assignment Questions: 1. For the month of September, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance (MPV) b. Direct materials quantity variance (MQV) c. Direct manufacturing labor rate variance (LRV) d. Direct manufacturing labor efficiency variance (LEV) e. Variable manufacturing overhead rate variance (VMRV) f. Variable manufacturing overhead efficiency variance (VMEV) g. Production-volume variance (pvv) h. Fixed manufacturing overhead spending variance (FMOH flexible variance) 2. After performing the varianee analysis in September, Tara identifies her top 2 variances that warrant further investigation. Based on your variance analysis in Part 1, which 2 variances would you investigate further and why? For each of these 2 variances, provide 1 potential reason for the ohserved variances, What corrective actions would you recommend? Read the following information on Variance Analysis and complete the assignment questions listed at the end of the reading. This should be completed in a group of 1-4 students. While everyone should work on the problem, only one copy per group needs to be submitted. The work may be handwritten or submitted as a clearly labeled Excel file. This activity needs to be completed in-class today. Tara Tahari is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses fwo direct-cost categories: direct materials and direct manufacturing labor. Tahari feels that manufacturing overhead is most closely related to direct labor hours. Therefore, DDC allocates manufacturing everhead to production based upon standard direct labor bours. At the beginning of 2022, DDC budgeted annual production of 420,000 doorknobs and adopted the following standards for each doorknob: Actual results for September 2022 were as follows: Some Formulas: MQVSPSQAQU MPV=AQSPAP LEV=SR SH AH L.RV =AHSRAR Assignment Questions: 1. For the month of September, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance (MPV) b. Direct materials quantity variance (MQV) c. Direct manufacturing labor rate variance (LRV) d. Direct manufacturing labor efficiency variance (LEV) e. Variable manufacturing overhead rate variance (VMRV) f. Variable manufacturing overhead efficiency variance (VMEV) g. Production-volume variance (pvv) h. Fixed manufacturing overhead spending variance (FMOH flexible variance) 2. After performing the varianee analysis in September, Tara identifies her top 2 variances that warrant further investigation. Based on your variance analysis in Part 1, which 2 variances would you investigate further and why? For each of these 2 variances, provide 1 potential reason for the ohserved variances, What corrective actions would you recommend
