Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred actual direct materials costs of $63,101 for 7,090 units of direct materials in the production of 2,150 pairs of shoes. Complete the following table, showing the direct materials variance relationships for July for Sole Purpose Shoe Company. If reqwred, round your answers to two decimal places. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance. Actual Cost V Direct Materials ' Variance: $l:l V Total Direct Materials ' Variance: E A Direct Labor Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,880 for 7,320 hours of direct labor in the production of 2,200 pairs of shoes. Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a Favorable variance, and a positive number For an unfavorable variance. Actual Cost Actual Actual Actual Standard Hours Rate Hours Rate [:1 X #:l :1 X V Direct Labor ' DirE ' Variance: V Va #:l ' Total Direct Labor ' Variance: Budget Performance Report Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company For September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 2,500 pairs of shoes that required 8,750 units of material purchased at $8.20 per unit and 6,750 hours of labor at an hourly rate of $8.90 per hour during the month. Actual Factory overhead during September was $20,250. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance. Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September. Standard Standard Standard Cost Manufacturing Costs Price Quantity Per Unit Direct materials $8.40 per unit 3.60 units per pair $30.24 Direct labor $8.50 per hour 2.80 hours per pair 23.80 Factory overhead $2.20 per hour 2.80 hours per pair 7.56 Total standard cost per pair $61-60 Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30 Cost Variance * Standard Cost at (Favorable) Manufacturing Costs Actual Costs Actual Volume Unfavorable Direct labor Factory overhead I I I I I I Total manufacturing costs $I I $I I $l l Feedback VCheckMyWurk Review Exhibit 3 and computations for the amounts on the report. Final Questions Before Sarah makes any changes based on the Budget Performance Report for September, she wants to be sure she understands the results, and has the following questions for you. Answer the following questions (1) and (2). All questions pertain to the September data. 1. What caused the total cost variance for direct materials? a. The actual quantity of direct materials per unit was less than the standard quantity. b. The actual price for direct materials per unit was less than the standard price. c. The favorable price variance dominated the unfavorable quantity variance, causing the total cost variance for direct materials to be favorable. d. The unfavorable quantity variance dominated the favorable price variance, causing the total cost variance for direct materials to be unfavorable. e. A factor other than those listed caused the total cost variance for direct materials. 4 Before Sarah makes any changes based on the Budget Performance Report for September, she wants to be sure she understands the results, and has the following questions for you. Answer the following questions (1) and (2). All questions pertain to the September data. 1. What caused the total cost variance for direct materials? a. The actual quantity of direct materials per unit was less than the standard quantity. b. The actual price for direct materials per unit was less than the standard price. c. The favorable pnce variance dominated the unfavorable quantity variance, causing the total cost variance for direct materials to be favorable. d. The unfavorable quantity variance dominated the favorable price variance, causing the total cost variance for direct materials to be unfavorable. e. A factor other than those listed caused the total cost variance for direct materials. bandc 'X 2. What caused the total cost variance for direct labor? a. The actual number of labor hours per unit was less than the standard number: b. The unfavorable rate variance was larger than the favorable time variance, causing the total cost variance for direct labor to be unfavorable. c. The favorable time variance was larger than the unfavorable rate variance, causing the total cost variance for direct labor to be favorable. d. The actual rate for labor hours per unit was less than the standard rate. e. A factor other than those listed caused the total cost variance for direct labor. 2. What caused the total cost variance for direct labor? a. The actual number of labor hours per unit was less than the standard number. b. The unfavorable rate variance was larger than the favorable time variance, causing the total cost variance for direct labor to be unfavorable. c. The favorable time variance was larger than the unfavorable rate variance, causing the total cost variance for direct labor to be favorable. d. The actual rate for labor heurs per unit was less than the standard rate. e. A factor other than these listed caused the total cast variance fur direct laber