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The following standard costing data, per unit, are for Black Ltd. for January: Direct materials 45 kilograms at $8 per kilogram Direct labour 6 hours

The following standard costing data, per unit, are for Black Ltd. for January:

Direct materials 45 kilograms at $8 per kilogram
Direct labour 6 hours at $30 per hour
Variable overhead 6 hours at $10 per hour
Fixed overhead $ 45

For January, Blacks flexible budget volume of output was 720 units. Budgeted (planned) output was 750 units. Direct materials purchased and used were 31,000 kilograms at a total cost of $251,720. Direct labour used was 4,800 hours at $28.50 per hour. Variable overhead cost was $42,700. Actual fixed overhead cost was $38,000. Fixed overhead cost is applied using direct labour-hours. The normal volume is the same as the planned volume for January.

Required:

1. Prepare the static and flexible budgets and show the variances by completing the table given below. (Round "Direct labour rate" answers to 2 decimal places.)

2. Calculate the direct labour flexible budget variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

3. Calculate the direct materials variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

4. Compute the variable overhead variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

5. Compute the fixed overhead variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

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