Steven Harris is a cost accountant and business analyst for Dallas Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and direct manufacturing labor. Hamis feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before compuing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Qty. * Budgeted Price Actual Costs Incurred Purchases Usage Flexible Budget Direct materials a. Direct materials price variance (based on purchases) is b. The direct materials efficiency variance is Now complete the table for direct labor. Direct Manuf. Labor Actual Costs Incurred Actual Input Qty, Budgeted Price Flexible Budget G. The direct manufacturing labor price variance is d. The direct manufacturing labor efficiency variance is Next, complete the table for variable overhead. (Abbreviation used: Manuf - Manufacturing) Variable Manuf. OH Actual Costs Actual Input Qty. Incurred Budgeted Price e. The variable manufacturing overhead spending variance is f. The variable manufacturing overhead efficiency variance is Complete the table for fixed overhead Flexible Budget Allocated Overhead Same Budgeted Lump Actual Costs Sum Regardless Incurred of Output Level Flexible Budget Allocated Overhead Fixed Manuf. OH g. The production-volume variance is h. The fixed manufacturing overhead spending variance is Requirement 2. Can Harris use any of the variances to help explain any of the other variances? Give examples. The direct materials prices variance indicates that DDC paid for brass than they had planned. If this is because they purchased a Requirements 1. For the month of April, compute the following variances, indicating whether Bach is favorable (F) or unfavorable (U). a. Direct materials price variance (based on purchases) b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Variable manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance h. Fixed manufacturing overhead spending variance 2. Can Harris use any of the variances to help explain any of the other variances? Ciamples Data table Print Done - x Data table At the beginning of 2020, DDC budgeted annual production of 410,000 doorknobs and adopted the following standards for each doorknob: Direct materials (brass) Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard cost per doorknob Input 0.3 lb. at $91b. 1.2 hours at $19 hour Actual results for April 2020 were as follows: Cost Doorknob S Production 32,000 doorknob 2.70 Direct materials purchased 22.80 Direct materials used $4/lb x 0.3 lb. 1.20 Direct manufacturing labor 4.20 $141.0.3 b Variable manufacturing overhead 12,300 b. at $11,1b. 7,000 lbs. 29,800 hours for $655,000 $85,000 ' 30.90 Fixed manufacturing overhead $154,000 Print Done Print Done