Use the information above to compute direct labor and direct materials variances. Variable product costs are broken down into DM, DL, and VMOH.

Actual Spending Variance U or F lexible Activity Variance U or F Budget Investigate? 11,000 Units 10,500 10,500 10,500 430,500 420,000 20,000) U 440,000 Sales 3% No ariable Expenses 339,297 34,125 373422 57,078 336,000 16,000) 31,500 1500) F 367,500 17500) F 1% No 8% Yes 2% No 9% Yes Variable COGS 352,000 $33,000 $ 385,000 $ 55,000 3,297 U 2,625 U 5,922 Variable Selling Total Variable Contribution Margin Fixed Expenses 4578 $52,500 (2,500) 29,400 12,200 41,600 15,478 (600) 200 U 400) $ 30,000 $ 12,000 $ 42,000 13,000 2% No 2% No 1% No 47% Yes Fixed COGS Fixed SG&A None None None 12000 $ 2000 Total Fixed $4978 10,500 2,500) U $ Net Operating Income Price/Rate $5 per pound $14 per hour Quantity 2 pounds 1.5 Hours 0.5 machine hours $2 per machine hour $1 Standard Cost $10 $21 Direct Materials Direct Labor Variable manufacturing overhead $32 Total Standard Variable Costs Additional Information: Actual quantity of materials used and purchased is 23,100 pounds. Actual amount spent on direct materials is $117,117 Average rate paid for direct labor for the month was $14.40 per hour The only variance in variable manufacturing overhead was due to activity level. Direct Material Variances: Price variance Quantity variance Direct labor variances Labor rate Labor efficiency