Ruk Corporation manufactures nightstands. The company has to direct cost categories; Direct materials and direct labor costs. The allocation of variable manufacturing overhead is based on standard direct labor hours. Ruk provide the following information regarding its standards and actual performance for the month of July. For the month of July, Ruk has budgeted 48,000 pounds of direct materials and 45,000 direct labor hours at a total of $967,500. Based on the 45,000 direct labor hours, the budgeted variable manufacturing overhead was $360,000. The standard cost per pound was $11.25 and the standard quantity per output was 25 pounds. The following information shows the actual results for the month of July:Direct materials Price variance $90,400 f Price Variance per pound $0.19 per lb Efficiency variance $45000 f Direct labor Labor costs incurred. $1,005,000Efficiency variance. $5,912 f Actual wage rate - budgeted wage rate $0.97 per hour Variable manufacturing overhead Flexible budget variance ($17,800) UEfficiency variance ($25,900) U

Part a) and b) Direct Materials Variances and Analysis Direct Materials Variance: Actual Total Price AQ x SP Quantity Total Standard Results/ Actual Variance Variance Standard Allowed Units Results Allowed Unit Units Produced Direct Materials SO Materials Units Produced AP SP Price Unit AQ X AP DMPV AQ x SP DMOY SO x SP Total Cost DMV Total Direct Materials Variance Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance. Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance. Provide a possible reason for the favorable or unfavorable Total Direct Materials Variance. Part c) and d) Direct Labor Variances and Analysis Direct Labor Variance: Actual Total Labor AQ x SP F Direct Labor Total Standard Results/ Actual Rate or or Efficiency Standard Allowed Units Results Variance Variance Allowed Unit Units Produced Direct Labor DLH/Unit AP SP DL pnce unit AQ X AP AQ x SP DLEV SQ x SP Total Cost DLY Total Direct Labor Variance Provide a possible reason for the favorable or unfavorable Direct Labor Rate Variance. Provide a possible reason for the favorable or unfavorable Direct Labor Efficiency Variance. Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance. Part el and f) Overhend Variances and Analysis Variable Overhead Variance: Actual Total VOH AQ x SP F Direct Labor Total Standard Results/ Actual Spending or Efficiency Standard Allowed Units Results Variance Variance Allowed Unit Units Produced Variable Manufacturing Overhead SO Units ( DLH) SP VOH price DLH AQ X AP VOHSV AQ X SP DLE SQ x SP Total Cost VOHY Total Variable Overhead Variance