Sara May, Inc. designs and manufactures fleece quarter-zip jackets. It sells its jackets to brand-name outdoor Outfitters in lots of one dozen. Sara May's May 2020 static budget and actual results for direct inputs are as follows: E: (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 the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials 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.) Actual Price Actual Input Qty * Budgeted Price May 2020 Results Variance Units Direct materials Direct labor Total variance 1 Data table Static Budget Number of jacket lots (1 lot = 1 dozen) 450 Per Lot of Jackets: Direct materials 10 yards at $1.70 per yard = $17.00 Direct manufacturing labor 2.2 hours at $7.50 per hour = $16.50 Actual Results Number of jacket lots sold Total Direct Inputs: 475 Print Done Data table = Number or jacket IOS (I TOL - Tuozem 400 Per Lot of Jackets: Direct materials 10 yards at $1.70 per yard = $17.00 Direct manufacturing labor 2.2 hours at $7.50 per hour = $16.50 Actual Results Number of jacket lots sold 475 Total Direct Inputs: Direct materials 5,700 yards at $1.90 per yard = $10,830.00 Direct manufacturing labor 950 hours at $7.60 per hour = $7,220.00 Print Done More info Sara May 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." Print Done quirements quirements 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2020. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? 2. Comment on the May 2020 results. Would you continue the "experiment" of using the new material? Print Done