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Variance Analysis Consider the following information in answering the next 14 questions. DeFleur manufactures bicycles. The bicycles are manufactured in two divisions. In the framing

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Variance Analysis Consider the following information in answering the next 14 questions. DeFleur manufactures bicycles. The bicycles are manufactured in two divisions. In the framing division, the carbon bicycle frames are manufactured. In the assembly division, the components are assembled to the frame and the bike is ready for sale. There is no market for the unassembled frames and all manufactured frames are transferred to the assembly division. For the purposes of performance evaluation, the framing division transfers the completed frames to the assembly division at the budgeted standard cost of a frame. The budgeted units of production for the framing division is 1,000, all of which will be transferred to the assembly division at the standard full absorption cost. The budgeted costs for the framing division are as follows:Direct Materials per unit: 10 layers of carbon-fiber at $20/layer $200.00 Direct Labor per unit: 8 hours at $12/hour $96.00 1. Standard variable overhead is applied to products on the basis of direct labor hours at a rate of $0.50/direct labor hour. Budgeted Fixed Overhead is $30,000 and the standard fixed cost per unit is based on the budgeted units of production (Hint: Calculate the Standard FOH/unit). Actual data for the period relating to the costs are as follows: The actual number of units produced was 800 Actual Fixed Overhead costs were $30,000 Actual Variable Overhead costs $4,000 2. The framing division worked 7,500 direct labor hours during the year at a total cost of $93,750. 3. A total of 9,000 carbon-fiber layers were purchased and used in production during the year at a total cost of $171,000. 4. Total Budgeted cost for the framing division was $330,000. The total actual cost was $298,750. Note that all the questions on variance are with respect to the framing division

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