Wonderfull 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 $48,950 overall manufacturing cost variance is only 1.6% of the $3.059.375 standard cost of products made during the year. That's welll 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 Quantity or Hours 3.5e feet 2.7 hours (2) Standard Price or Rate Standard Cost (1) (2) $ 11.20 Iaputs Direct saterials Direct labor Variable overhead Fixed overhead $3.20 per foot 1e per hour S2.60 per hour 5.ee per hour 27.00 2.7 hours 2.7 hours 7.02 13.58 Total standard cost per unit s 58.72 The following additional information is available for the year just completed: a. The company manufactured 30,000 units of product during the year b. A total of 103.000 feet of material was purchased during the year at a Cost of $3.45 per foot. All of this material was used to manufacture the 30,000 units produced. There were no beginning of ending inventories for the year C The company worked 83,000 direct labor-hours during the year at a direct iabor cost of $9.90 per hour d. Overhead is applied to products on the bass of standard direct lapor-hours Data re ating to manufacturing overhead costs foillow Denoninator activity level (cirect 1abor-Nours) sudgeted fixed overhead costs Actual vaniable overhesd costs incurred Actual fixced overhead costs incurred Be.e S224 18 S396.see Required: Compute the materiels orice and quantity variances forthe year 2 Compute the lsboritate and efficlency variances for the yes Fotmanufacturing overneBc compute Elhe venabie overhead rate ane efficlency variances oneyear OEThexed ovetnead o.dget and volumevariances o1ne e For all requlrements Indlcate the effeet of each varlence by selecting "F" for favorable. "U for unfavorable. and effect .e. zerovarlencel.inout ollemounts os positive values None for no Denoninator activity level (direct labor-hours) Budgeted fixed overhead costs Actual variable overhead costs incurred Actual fixed overhead costs incurred 5 224,189 $ 396, 600