Stevenson Corp. produces a lawn and garden product called FastGrow. The direct materials and direct labour standards for one unit of FastGrow follow: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 4.10 kilograms $ 2.20per kilogram $ 9.02 Direct labour 0.42 hour $ 8.00per hour 3.36 Variable 0.42 hour 19 $ 1.30per hour 0.55 overhead The budgeted fixed overhead cost is $14,619 per month. The denominator activity level of the allocation base is 1,596 direct labour-hours. During the most recent month, the following activity was recorded: a. 9,100 kilograms of material were purchased at a cost of $2.22 per kilogram. b. All of the material purchased was used to produce 3,800 units of Zoom. c. A total of 790 hours of direct labour time was recorded at a total labour cost of 9,243. d. The variable overhead cost was $1,580, and the fixed overhead cost was $31,713. Required: Calculate the direct labour rate and efficiency variances for the month. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable. Wagner Company produces a single product. At a normal activity level of 40,000 units per month, the cost of producing and selling each unit is as follows: Variable selling & administrative costs Fixed MOH Variable MOH Direct labour Direct materials Fixed selling & administrative expense $1.80 17.30 1.10 8.10 42.60 8.00 This product normally sells for $86.10 per unit. A special order has been received for 2,000 units at a discounted price of $76.40 per unit. Wagner has determined that there is sufficient idle capacity to produce this special order and that there would be no effect on the company's normal sales and that fixed costs would not change with this order. With respect to variable costs, the company has identified that variable selling and administrative expense would be $1.20 less per unit for this order than on normal sales and that direct labour is a variable cost. By how much would this special order increase (decrease) the company's net operating income for the month? OA) ($5,000). B) ($17,000). OC) $13,400. OD) $48,000. Select all of the following statements that are correct. Purchase of poor quality materials will generally result in a favourable materials price variance and a favourable material quantity variance. The only difference between the static budget and flexible budget is that the static budget is prepared using planned output. If a company has a favourable efficiency variance, it uses less inputs than were budgeted for the output units achieved. The standard direct labour rate includes fringe benefits such as health/dental or pension. The material quantity variance is computed based on the quantity of all materials purchased during the period. In a standard costing system, under-applied or over-applied fixed overhead is equal to the sum of the fixed overhead budget variance and the fixed overhead volume variance