Soundset manufactures headphone cases. During September 2018, the company produced and sold 107,000 cases.

Please compute the cost and efficiency variances for direct materials and direct labor.

For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. If Soundsets management decided to use better quality materials during September, what would be the trade-off between the two direct material variances.

Thanks in advance

Standard Cost Information Quantity Cost 0.17 per part Direct Materials 2 parts $ Direct Labor 0.02 hours 8.00 per hour Variable Manufacturing Overhead 0.02 hours 10.00 per hour Fixed Manufacturing Overhead ($31,040 for static budget volume of 97,000 units and 1,940 hours, or $16 per hour) Actual Cost Information $ 45,980 0.22 per part) (209,000 parts @ $ Direct Materials 8.10 per hour) $ 13,284 Direct Labor (1,640 hours @ Variable Manufacturing Overhead 8,000 Fixed Manufacturing Overhead 31,000 Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC cost; AQ actual quantity; FOH = fixed overhead; SC standard cost; SQ standard quantity.) actual Formula Variance Direct materials cost variance Direct labor cost variance