Rubik 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 2020, Simplicity adopted the following standards for its manufacturing costs:

Input Cost per Output Unit Direct materials 4.7 lb. at $3.70 per lb. $ 17.39 Direct manufacturing labor 4 hrs. at $15.50 per hr. 62.00 Manufacturing overhead: Variable $8 per DLH 32.00 Fixed $9 per DLH 36.00 Standard manufacturing cost per output unit

$147.39

The denominator level for total manufacturing overhead per month in 2020 is 37,000 direct manufacturing labor-hours. Simplicitys budget for January 2020 was based on this denominator level. The records for January indicated the following: Direct materials purchased 39,000 lb. at $3.50 per lb. Direct materials used 36,000 lb. Direct manufacturing labor 31,000 hrs. at $15.80 per hr. Total actual manufacturing overhead (variable and fixed)

$650,000 Actual production 7,600 output units Required: 1. Calculate the total standard manufacturing costs for the 7,600 output units in January 2020. 2. For the month of January 2020, compute the following variances and indicate whether each is favorable (F) or unfavorable (U). Be sure to separate and label the computations for each variance.

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