The roofing company manufactures shingles. Standard Cost Sheet per shingle 1.5 pounds $0.07 per pound direct labor Direct materials Asphalt 0.01 hour $11 per hour Direct labor Variable direct labor Manufacturing $2 per hour 0.01 hour overhead Fixed direct labor Manufacturing 0.01 hour $10 per hour overhead Total standard cost per shingle $60,000 600,000 Units 6000 direct labor hours Budgeted fixed manufacturing overhead for the period is Budgeted units to be produced Standard fixed manufacturing overhead based on expected capacity of The following information is available regarding the company's actual operations for the period. 530,000 Shingles produced Materials purchased: Asphalt 9 $0.09 per pound 755,000 pounds 0 Materials used: 750,000 pounds 5,100 hours Asphalt Direct labor: $13.00 per hour Manufacturing overhead incurred Variable $11,322 26 $2.22 VOH rate per direct labor hour $59,700 Fixed 28 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 1 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