The Blazon Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of 2017, Blazon adopted the following standards for its manufacturing costs: (Click to view the standards.) |(Click to view additional information.) Read the requirements. Requirement 1. Prepare a schedule of total standard manufacturing costs for the 8,000 output units in January 2017. Direct materials $ 224,000 960,000 Direct manufacturing labor Variable manufacturing overhead 336,000 480,000 Fixed manufacturing overhead $ 2,000,000 Total Requirement 2. For the month of January 2017, compute the variances, indicating whether each is favorable (F) or unfavorable (U). Before computing the variances complete the tables below. Begin by completing the table for direct materials. Actual Input Quantity * Budgeted Price Actual Costs Incurred Flexible Budget Purchases Usage Direct materials Data table Data table Cost per Input Output Unit The denominator level for total manufacturing overhead per month in 2017 is 39,000 direct manufacturing labor-hours. Blazon's budget for January 2017 was based on this denominator level. The records for January indicated the following: Direct materials 4 lb. at $7 per Ib. $ 28.00 6 hrs. at $20 per hr. 120.00 Direct materials purchased 34,200 lb. at $7.20 per lb. $7 per DLH 42.00 Direct materials used 32,200 lb. Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Standard manufacturing cost per output unit 60.00 $10 per DLH 46,500 hrs. at $19.80 per hr. $ 250.00 Direct manufacturing labor Total actual manufacturing overhead (variable and fixed) Actual production $600,000 8,000 output units Print Done Print Done - Requirements 1. Prepare a schedule of total standard manufacturing costs for the 8,000 output units in January 2017. 2. For the month of January 2017, compute the following variances, indicating whether each 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. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance Print Done