Review of Chapters 7 and 8, 3-variance analysis. (CPA, adapted) The Brown Manufacturing Companys costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of 2014, Beal adopted the following standards for its manufacturing costs: InputCost per Output Unit Direct materials5 lb. at $4 per lb.$ 20.00Direct manufacturing labor4 hrs. at $16 per hr. 64.00Manufacturing overhead: Variable$8 per DLH 32.00 Fixed$9 per DLH 36.00Standard manufacturing cost per output unit$152.00The denominator level for total manufacturing overhead per month in 2014 is 37,000 direct manufacturing labor-hours. Beals flexible budget for January 2014 was based on this denominator level. The records for January indicated the following:Direct materials purchased40,300 lb. at $3.80 per lb.Direct materials used37,300 lb.Direct manufacturing labor31,400 hrs. at $16.25 per hr.Total actual manufacturing overhead (variable and fixed)$650,000Actual production7,600 output units 1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2014. 2. For the month of January 2014, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance Copyright | Prentice Hall | Cost Accounting | Edition 15 | derekg1127@gmail.com | Printed from www.chegg.com