The roofing company manufactures shingles. Standard Cost Sheet per shingle Direct materials $0.07 per pound Direct labor $10 per hour Variable Manufacturing overhead Asphalt 1.5 pounds direct labor 0.01 hour direct labor 0.01 hour direct labor 0.01 hour Total standard cost per shingle $2 per hour Fixed Manufacturing overhead $10 per hour Budgeted fixed manufacturing overhead for the period is Budgeted units to be produced Standard fixed manufacturing overhead based on expected capacity of $60,000 600,000 Units 6000 direct labor hours The following information is available regarding the company's actual operations for the period. 530,000 755,000 pounds Shingles produced Materials purchased: Asphalt Materials used: Asphalt Direct labor: $0.08 per pound 750,000 pounds 5,100 hours $11.00 per hour Manufacturing overhead incurred: Variable $11,271 S2.21 VOH rate per direct labor hour $59,500 Fixed Required: Make sure you do not forget to label each variance U or F. You need to use cell references for your calculations. 1. Calculate the direct materials price and quantity variance Material price variance should be based on material purchased, since you want to isolate the variance as soon as possible. Material Quantity variance should be based on materials used, since this is monitoring the production efficiency. Material purchase price variance Material Quantity variance 2. Calculate the direct labor rate and efficiency variances. Labor rate variance Labor Efficiency variance 3. Variable manufacturing overhead spending and efficiency variances. Variable overhead spending variance Variable overhead efficiency variance 4. Fixed manufacturing overhead budget variance. Fixed Manufacturing overhead budget variance 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances