"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $34,700 overall manufacturing cost variance is only 1.0% of the $3,470,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year." The company produces and sells a single product. The standard cost card for the product follows: (1) Standard (2) Quantity or Standard Price or Standard Cost Inputs Hours Rate (1) x (2) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one Direct materials 3.50 feet $ 4.10 per foot $ 14.35 Direct labor 1.8 hours $ 10 per hour 18.00 unit of Zoom are given below: Variable overhead 1.8 hours $ 2.50 per hour 4. 50 Fixed overhead 1.8 hours $ 5.00 per hour 9.00 $ 45.85 Standard Quantity or Total standard cost per unit Hours Standard Price or Rate Standard Cost Direct materials 6.40 pounds $ 1.70 per pound $ 10. 88 The following additional information is available for the year just completed: Direct labor 3. 40 hours $ 14.00 per hour $ 5.60 a. The company manufactured 25,000 units of product during the year. During the most recent month, the following activity was recorded: b. A total of 85,000 feet of material was purchased during the year at a cost of $4.50 per foot. All of this material was used to manufacture the 25,000 units produced. There were no beginning or ending inventories for the year. c. The company worked 46,500 direct labor-hours during the year at a direct labor cost of $9.70 per hour. d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow: a. 18,500.00 pounds of material were purchased at a cost of $1.40 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $13,600. Denominator activity level (direct labor-hours) 42,080 Budgeted fixed overhead costs 210,090 Actual variable overhead costs incurred $ 120,900 Actual fixed overhead costs incurred $ 206,090 Required: Required: 1. Compute the materials price and quantity variances for the month. 1. Compute the materials price and quantity variances for the year. 2. Compute the labor rate and efficiency variances for the month. 2. Compute the labor rate and efficiency variances for the year. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no 3. For manufacturing overhead compute: a. The variable overhead rate and efficiency variances for the year. effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar.) b. The fixed overhead budget and volume variances for the year. (For all requirements, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no 1. Materials price variance effect (i.e., zero variance), Input all amounts as positive values.) 1. Materials quantity variance 1. Materials price variance . Labor rate variance 1. Materials quantity variance 2. Labor efficiency variance 2. Labor rate variance 2. Labor efficiency variance 3a. Variable overhead rate variance 3a. Variable overhead efficiency variance 3b. Fixed overhead budget variance 3b. Fixed overhead volume variance