The managers of Berkner, a contract manufacturer of DVD drives, are seeking explanations for the variances in the following report. 5 (Click on the icon to view the report.) Explain the meaning of each of Berkner's materials, labour, and overhead variances. Materials The occurred because Berkner actually used direct materials than the standard quantity of materials allowed for the year's actual output. These results suggest occurred because Berkner paid than the standard price for raw materials. The V -quality raw materials than originally budgeted. that Berkner bought a X Data table Berkner Co. Standard Cost Income Statement Year Ended December 31 Sales revenue $ 1,190,000 700,000 $ 30.000 U Cost of goods sold at standard cost Manufacturing cost variances: Direct materials price variance Direct materials efficiency variance Direct labour price variance Direct labour efficiency variance Manufacturing overhead flexible budget variance 11.000 F 11.000 U 23,000 F 8,000 F 28,000 U Production volume variance 27,000 727,000 Total manufacturing variances Cost of goods sold at actual cost Gross profit Marketing and administrative expenses 463,000 416,000 $ 47,000 Operating income The managers of Berkner, a contract manufacturer of DVD drives, are seeking explanations for the variances in the following report. 5 (Click on the icon to view the report.) Explain the meaning of each of Berkner's materials, labour, and overhead variances. Materials The occurred because Berkner actually used direct materials than the standard quantity of materials allowed for the year's actual output. These results suggest occurred because Berkner paid than the standard price for raw materials. The V -quality raw materials than originally budgeted. that Berkner bought a X Data table Berkner Co. Standard Cost Income Statement Year Ended December 31 Sales revenue $ 1,190,000 700,000 $ 30.000 U Cost of goods sold at standard cost Manufacturing cost variances: Direct materials price variance Direct materials efficiency variance Direct labour price variance Direct labour efficiency variance Manufacturing overhead flexible budget variance 11.000 F 11.000 U 23,000 F 8,000 F 28,000 U Production volume variance 27,000 727,000 Total manufacturing variances Cost of goods sold at actual cost Gross profit Marketing and administrative expenses 463,000 416,000 $ 47,000 Operating income