The Brown 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 2014, Beal adopted the following standards for its manufacturing costs:

1. Prepare a schedule of total standard manufacturing costs for the 7,600 output units in January 2014. 2. For the month of January 2014, 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

3. a. Prepare a schedule showing the standard manufacturing costs for January 2014 as of January 1, 2014. Use the format given below to prepare this schedule or any schedule of costs in this problem. (Hint: At this point, you do not have the actual output for January.)

b. Using the schedule you prepared in Requirement #1, prepare the analysis showing the sales volume variances.

c. Using the information given in the problem, prepare the analysis showing the Flexible budget variances.