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Steven Roberts is a cost accountant and business analyst for Daily Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct

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Steven Roberts is a cost accountant and business analyst for Daily Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Roberts feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. (Click the icon to view the standards.) (Click the icon to view the actual results for April.) i Data Table - X Read the requirements. Requirement 1. For the month of April, compute the variances, indicating whether each is favorable (F) or unfavorable (U). At the beginning of 2020, DDC budgeted annual production of 410,000 doorknobs Before computing the variances complete the tables below. Begin by completing the table for direct materials. and adopted the following standards for each doorknob: Actual Input Qty. x Budgeted Input Cost/Doorknob Price Direct materials (brass) 0.3 lb. at $11/lb. 3.30 Actual Costs Flexible Direct manufacturing labor 1.2 hours at $20/hour 24.00 Incurred Purchases Usage Budget Variable manufacturing overhead $6/lb x 0.3 lb. 1.80 Direct materials $14/lb. x 0.3 lb. 4.20 Fixed manufacturing overhead a. Direct materials price variance (based on purchases) is Standard cost per doorknob $ 33.30 b. The direct materials efficiency variance is i Data Table - X Now complete the table for direct labor. Actual Costs Actual Input Qty. x Flexible Incurred Budgeted Price Budget Actual results for April 2020 were as follows: Direct Manuf. Labor Production 30,000 doorknobs Direct materials purchased 12, 100 lb. at $12/lb c. The direct manufacturing labor price variance is Direct materials used 7,000 lbs. d. The direct manufacturing labor efficiency variance is Direct manufacturing labor 29,900 hours for $657,800 Variable manufacturing overhead $64,800 Next, complete the table for variable overhead. (Abbreviation used: Manuf = Manufacturing) Allocated Fixed manufacturing overhead $ 162,000 Actual Costs Actual Input Qty. x Flexible Choose from any list or enter any number in the input fields and then continue to the next question. Print Done

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