Wakky Company produces widgets. In the table below, the company has begun the calculation of the standard cost to make one widget. Using the standard manufacturing overhead data provided, complete the table below to show the total manufacturing cost of one widget. The standards are to be computed based upon normal annual production of 60,000 widgets for the year, with factory overhead applied based on direct labor hours. At the beginning of the year, management made the following estimates related to overhead: Standard FOH Costs: For Normal Capacity (estimated at the beginning of the year for a production level of Estimated annual variable overhead costs = Estimated annual fixed overhead costs = Total estimated annual overhead costs= Total estimated annual direct labor hours (DLH) at 100% of normal capacity (60,000 widgets) = Variable factory overhead rate per direct labor hour = Fixed factory overhead rate per direct labor hour = Predetermined factory overhead rate per DLH= 1. Complete the Standard Cost Report: Product manufactured = Direct materials Direct labor Manufacturing Cost Element Standard Quantity 3 pounds Factory overhead applied: Variable FOH Wakky Company Standard Cost Report Widgets Direct materials cost Direct labor cost Factory overhead applied 1.5 DLHS 1.5 DLHS Fixed FOH Calculated standard cost to manufacture 1 widget 2. Calculate the standard costs allowed for the actual output level of widgets: Standard price 70,000 widgets per lb. per DLH PFOH Rate Direct materials: Direct labor: 208,000 111,000 Actual Production The actual cost and amounts of input to make the actual output of ended December 31, 201X was Factory Overhead (FOH): Standard Price $6.00 per pound $15.00 per DLH Unit of Product One Widget 3. Calculate the total manufacturing cost variance per DLH per DLH lbs@ DLH@ Total variable FOH costs Total fixed FOH costs Total actual FOH costs for 201X $607,500 $337,500 $945,000 total lbs allowed total DLH allowed total DLH allowed Standard cost allowed for actual output level 90,000 Total DLHs Standard Cost $695,000 $340,000 per DLH per DLH per DLH 70,000 widgets for the year $6.20 per pound $14.00 per DLH Actual cost for actual output level Total 60,000 widgets): Total STANDARD COSTS AND VARIANCES 4. Calculate the materials price variance, the materials quantity variance and the total materials variance (please label your answers and indicate favorable or unfavorable): 5. Calculate the labor rate variance, the efficiency variance, and the total labor variance (please label your answers and indicate favorable or unfavorable): 6. Calculate the overhead controllable variance, the overhead volume variance, and the total overhead variance (please label your answers and indicate favorable or unfavorable): 7. Complete the following t-account for Factory Overhead (Hint: the balance should match your total factory overhead variance). Factory Overhead 8. Was factory overhead overapplied or underapplied? 9. By how much was factory overhead overapplied or underapplied? 10. Complete the following report for management: Sales Cost of goods sold (at standard) Manufacturing cost variances: Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance Variable overhead controllable variance Fixed overhead volume variance Total manufacturing cost variances Cost of goods sold (at actual) Gross profit Selling and administrative expenses: Selling expenses Wakky Company Standard Costing Income Statement For the Year Ended December 31, 201X Administrative expenses Total selling and administrative expenses. Income from operations Favorable Unfavorable 225,000 175,750 11. Did the total manufacturing cost variances increase or decrease Income from Operations? 12. Which, if any, cost variances should be investigated? $ 4,378,000