Rugged Life, Inc. designs and manufactures fleece quarter-zip jackets. It sells its jackets to brand-name outdoor outfitters in lots of one dozen. Rugged Life's May 2020 static budget and actual results for direct inputs are as follows: Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2020. What is they total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direckmaterials and direct manufacturing labor in the flexible budget? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2020. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget columns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent.) May 20201 Units Direct materials Direct labor. Total variance Actual Input Qty x Budgeted Price Efficiency Variance Actual Results Price Variance Flexible Budget 325 325 31525 1300 U 30225 3022.50 U 27202.50 9009 71.50 U 1371.50 U 8937.50 812.50 F 9750 2210 U The total flexible-budget variance for both inputs 3581.50 unfavorable. This variance is labor in the flexible budget. (direct materials and direct manufacturing labor) combined is 9.69 % of the total cost of direct materials and direct manufacturing (Round the variance to the nearest cent and the percentage to two decimal places, X.XX%.) Requirement 2. Comment on the May 2020 results. Would you continue the "experiment" of using the new material? OA. Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and feel, Rugged Life should not continue to use the new material in light of the unfavorable efficiencies. B. Efficiencies have improved in the direction indicated by the production manager-but, it is unclear whether they are a trend or a one-time occurrence. Rugged Life should continue to use the new material, especially in light of its superior quality and feel; but it may want to re-examine the standard material price since the new material costs more than the old. OC. Efficiencies have improved in the direction indicated by the production manager. Rugged Life should not continue to use the new material, though, since the overall efficiency variance is still unfavorable. OD. Efficiencies have improved in the direction indicated by the production manager but Rugged Life should not continue to use the new material. Use of the new material would require a change to the standard material price since the new material costs more than the old. Making this change to the cost accounting system is complex and very expensive. Data table. Static Budget Number of jacket lots (1 lot = 1 dozen) Per Lot of Jackets: Direct materials Direct manufacturing labor Actual Results Number of jacket lots sold Total Direct Inputs: Direct materials Direct manufacturing labor 300 18 yards at $4.65 per yard = $83.70 2.4 hours at $12.50 per hour = $30.00 325 6,500 yards at $4.85 per yard = $31,525.00 715 hours at $12.60 per hour = $9,009.00 Print Done More info - Rugged Life has a policy of analyzing all input variances when they add up to more than 8% of the total cost of materials and labor in the flexible budget, and this is true in May 2020. The production manager discusses the sources of the variances: "A new type of material was purchased in May. This led to faster cutting and sewing, but the workers used more material than usual as they learned to work with it. For now, the standards are fine