Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as follows: $ Direct materials: 2 metres at $3 per metre Direct labour: 1 hour at $4.50 per hour Variable manufacturing overhead: 1 hour at $3 per hour Fixed manufacturing overhead: 1 hour at $5 per hour Total standard variable cost per unit 6.00 4.50 3.ee s.ee $ 18.50 During October, 6,000 units were produced. Selected data relating to the month's production follow: $ 57,000 Materials purchased 20,000 metres at $2.85 per metre Materials used in production 12, 650 metres Direct labour ? hours at 5 ? per hour Variable manufacturing overhead cost incurred Variable manufacturing overhead officiency variance Denominator level of activity for October Fixed manufacturing overhead budget variance $ 27,950 $ 20,475 3 1,500 6,200 hours 1, U There was no beginning inventory of raw materials. The variable and fixed manufacturing overhead rates are based on direct labour- hours a. Compute the price and quantity variances for October (Indicate the effect of each varlance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (le, zero varlance)) Price variance Quantity variance b. Prepare journal entries to record activity for October View transaction et Journal entry worksheet + 2 Record the materials price variance General Journal Deb Credit 2. For direct labour a Compute the rate and efficiency vartances for October (Indicate the effect vartance by selecting "F* fot favourable. "U" for unfavourable, and "None" for no effect (le, zero vartance) Rate variance Ency variance b. Prepare a journal entry to record labour activity for October Journal entry worksheet Or for October 3. For variable manufacturing overhead: a. Compute the spending variance for October, and vertfy the efficiency vartance given above. Indicate the effect variance by selecting for favourable, for uriavourable, and None" for no effect t.e., zero variance) Spending variance Endency varianos b. Not available in Connect 4. For fixed manufacturing overhead a. Compute the volume vstance for October. Indicate the effect variance by testing for favourable. "Ufor unfavourable and None for no effect tie zero variance Bepute cu costs for toe The