Styles Styles Pane Dictate Question 1 (25 Marks) NCL Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis of standard direct labor-hours (DLH). The standard cont card for the product follows: Standard Cost Card-per unit of product Direct Materials (4 yards at $3.50 per yard) S 14 Direct Labor (1.5 DLHs at $8 per DLH) 12 Variable Overhead (1.5 DLHs at 52 per DLH) 3 Fixed Overhead (1.5 DLHs at S6 per DLH) 9 Standard cost per unit The following data pertain to last year's activities: The company manufactured 18,000 units of product the year. A total of 70,200 yards of material was purchased during the year at a cost of $3.75 per yaru sail of this material was used to manufacture the 18,000 units. The company worked 29,250 direct labor-hours during the year at a cost of $7.80 per hour. The denominator activity level was 22,500 direct labor-hours. Budgeted fixed manufacturing overhead costs were $135,000 while actual fixed manufacturing overhead costs were $133,200. - Actual variable overhead costs were $61.425. Required: a. Compute the direct materials price and quantity variances for the year. (4 marks) b. Compute the direct labor rate and efficiency variances for the year. (4 marks) c. Compute the variable overhead rate and efficiency variances for the year. (4 marks) d. Compute the fixed manufacturing overhead budget and volume variances for the year. (4 marks) e. Why might NCL Company calculate direct materials price variance and direct material efficiency variances with reference to different points in time? (4 marks) f. What is a direct labor efficiency variance and what are some of the likely causes of this variance