The Ebonie Manufacturing Companys costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labour-hours (DLH). At the beginning of 2022/2023, Ebonie adopted the following standards for its manufacturing costs:

standard			input		cost per output unit
Direct material	3	kg at	$5	per kg	$15
Direct manufacturing labor	5	hrs at	$15	per hrs	$75
manufacturing overhead
variable			$6	per DLH	$30
fixed			$8	per DLH	$40
standard manufacturing cost per unit					$160

The denominator level for total manufacturing overhead per month in 2022/2023 is 40,000 direct manufacturing labour-hours. Ebonie Manufacturings flexible budget for January 2023 was based on this denominator level. The records for January indicated the following:

actual cost
direct material purchased	25000	kg	$5.20	per kg
direct material used	23100	kg
direct manufacturing labor	40100	hours	$14.60	per hr
total actual manufacturing overhead(variable and fixed $600000
actual production	7800	output unit

1. Prepare a schedule of total standard manufacturing costs for the 7800 output units in January.

2 For the month of January 2023, calculate the following variances, indicating whether each is favourable (F) or unfavourable (U), in good format with workings:

a Direct materials price variance, based on purchases

b Direct materials efficiency variance

c Direct manufacturing labour price variance

d Direct manufacturing labour efficiency variance

e Total manufacturing overhead spending variance

f Variable manufacturing overhead efficiency variance

g Production-volume variance.