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Standard cost per unit $39.90 3 Skipped The following additional information is available for the year just completed: a. The company manufactured 29,000 units of

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Standard cost per unit $39.90 3 Skipped The following additional information is available for the year just completed: a. The company manufactured 29,000 units of product during the year. b. A total of 50,000 metres of material was purchased during the year at a cost of $8.60 per metre. All of this material was used to manufacture the 29,000 units. There were no beginning or ending inventories for the year. c. The company worked 43,000 direct labour-hours during the year at an average cost of $8.70 per hour d. Overhead is applied to products on the basis of direct labour hours. Data relating to manufacturing overhead costs follow Denominator activity level (direct labour-hours) Budgeted fixed overhead costs (from the overhead flexible budget) Actual variable overhead costs incurred Actual fixed overhead costs incurred 37,000 5.296,000 105,000 297,680 Required: 1. Compute the direct materials price and quantity variances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materiais quantity vanance 3 2. Compute the direct labour rate and efficiency variances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effectie, zero variance).) Lisbour rate variance Labour efficiency variance 3. For manufacturing overhead, compute the following: a. The variable overhead spending and efficiency variances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance)) Variable overhead spending variance Variable overhead efficiency varianco 3 b. The fixed overhead budget and volume variances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero variance).) pped Fixed overhead budget variance Fixed overhead volume variance 4-a. Compute the total varlance (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "N for no effect (i.e., zero variance).) Total vanance 4-b. Compare the calculated variance with the net amount mentioned by the president. Based on your comparison should bonuses be given to everyone for good cost control during the year? Yes O No

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