Tara Tahari is a cost accountant and business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Tahari feels that manufacturing overhead is most closely related to direct labor hours. Therefore, DDC allocates manufacturing overhead to production based upon standard direct labor hours. At the beginning of 2020, DDC budgeted annual production of 420,000 doorknobs and adopted the following standards for each doorknob: Input Cost/Doorknob Direct materials (brass) 0.3 lb. @ $10/lb. $ 3.00 Direct manufacturing labor 1.2 hours @ $17/hour 20.40 Manufacturing overhead: Variable $1.25/hour. 1.2 hours 1.50 Fixed $3.75/hour. 1.2 hours 4.50 Standard cost per doorknob $29.40 Actual results for September 2020 were as follows: Production 29,000 doorknobs Direct materials purchased 12,400 lb. at $11/lb. Direct materials used 8,500 lbs. Direct manufacturing labor 29,200 hours for $671,600 Variable manufacturing overhead $ 65,100 Fixed manufacturing overhead $158,000 B BUS 373 Group Assignment 7 Variance Analysis Due: 5pm on 11/30/20 Assignment Questions: 1. For the month of September, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance (MPV) b. Direct materials quantity variance (MQV) c. Direct manufacturing labor rate variance (LRV) d. Direct manufacturing labor efficiency variance (LEV) e. Variable manufacturing overhead rate variance (VMRV) f. Variable manufacturing overhead efficiency variance (VMEV) g. Production-volume variance (pvv) h. Fixed manufacturing overhead spending variance (FMOH flexible variance) 2. After performing the variance analysis in September, Tara identifies her top 3 variances that warrant further investigation. Based on your variance analysis in Part 1, which three variances would you investigate further and why? For each of these three variances, provide two potential reasons for the observed variances. What corrective actions would you recommend?