REQUIRED (show all your workings):

For 2020, compute the following variances, indicating whether each is favourable (F) or unfavourable (U):

1. Direct materials price variance, based on USAGE
2. Direct materials efficiency variance
3. Direct manufacturing labour price variance
4. Direct manufacturing labour efficiency variance
5. Variable manufacturing overhead cost spending variance
6. Variable manufacturing overhead efficiency variance
7. Fixed overhead costs production-volume variance
8. Fixed overhead costs spending variance

Rodino Inc. manufactures small tents for hiking. For financial year starting on 2020 Rodino Inc. budgeted the production of 6,000 units. The costs of production are presented below. Manufacturing fixed and variable verhead is allocated to tents based on direct labour costs. The following are the standards for its manufacturing costs: Per unit Direct materials 4.5 m of fabric at $16 per m $72 Direct manufacturing labour (DLH) 2.5 hours at $20 per hour $50 Manufacturing overhead Variable $0.6 per $ of direct labour costs ? Fixed $1.4 per $ of direct labour costs ? Budgeted fixed manufacturing overhead costs Budgeted variable manufacturing overhead costs $420,000 $180,000 The records for the financial year 2020 indicated the following: Direct materials purchased Direct materials used Direct manufacturing labour Total direct labour costs Actual fixed manufacturing overhead Actual variable manufacturing overhead Actual production 27,000 m at $15.2 per m 25,000 m 15,000 hours at $21 per hour $315,000 $410,000 $185,000 5,500 units