The Trial Balance for Sunland Corp. shows the following for its DM and DL variance at year, prior to closing entries

Debit Credit

DM price variance $$5,490$

DM efficiency variance $$10,460$

DL price variance $590$

DL efficiency variance $15,910$

Throughout the year, actual purchase costs for DM totaled @$231,650$; transfers of DM cost into production totaled $$234,450.$ The total flexible budget DL cost was $$187,900$ this year.

$($a$)$ Identify whether each total variance above is favorable or unfavorable.

DM price variance $($favorable$,$ unfavorable, neither$)$

DM efficiency variance $($favorable$,$ unfavorable, neither$)$

DL price variance $($favorable$,$ unfavorable, niether$)$

Dl efficiency variance $($favorable$,$ unfavorable, neither$)$

How was the status determined?

the variances with $($debit $/$ credit$)$ balance are unfavorable, and the variances with a $($debit $/$ credit$)$ balances are favorable.

$($b$)$ Assume the company's threshold for determining the materiality of each variance is $5\%$ of its flexible budget cost; Calculate the significance level of each DM variance in comparison to the DM flexible budget cost.

Calculate the significant level of each DL variance in comparison to the DL flexible budget cost.

Compare each variance's significance level to the company's threshold of $5\%.$ Which if these variances $($if any$)$ are concerning $($i$.$e$.$ material$)$ to the company?

DM price variance $\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_($material $/$ not material$)$

DM efficiency variance $\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_($material $/$ not material$)$

DL price variance $\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_($material $/$ not material$)$

DL efficiency variable $\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_($material $/$ not material$)$