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 $49,350 overall manufacturing cost vartance only 10% of the $4,935,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable vartances. 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: Inputs Direct materials Direct labor Variable overhead Fived overhead Total standard cost per unit Standard Quantity or Hours 4.50 feet 1.5 hours 1.8 hours (2) Standard Price or Rate $4.10 per foot $ 11 per hour 5 1.10 per hour $ 6.50 per hour Standard Cost (1) (2) $18.45 23.40 1.24 11.70 $56.79 The following additional information is available for the year just completed a. The company manufactured 15.000 units of product during the your b. A total of 65,500 feet of material was purchased during the year at a cost of $4.40 per foot. All of this material was used to manufacture the 15,000 units produced. There were no beginning or ending Inventories for the year c The company worked 30,000 direct labor hours during the year at a direct labor cost of $12.65 per hour d Overhead is applied to products on the bacis of standard direct labor hours. Data relating to manufacturing overhead cotto follow Denontortivity level (Grect labor.fours) Budgeted fixed overhead costs Actual variable overhead costs incurred Actual Tiked overhead costs incurred 25,000 $ 162,50 $ 57.000 $ 160,10 Required: Required: 1. Compute the materials price and quantity vartances for the year, 2 Compute the labor rate and efficiency variances for the year 3. For manufacturing overhead compute: a The variable overhead rate and efficiency vartances for the year. b The fixed overhead budget and volume variances for the year. (For all requirements, indicate the effect of each vartance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (le, zero variance) Input all amounts as positive values) 1. Materials price variance Materials quantity variance 2 Labor rate variance Labor efficiency variance 3a Variable overhead rate variance Vanable overhead efficiency variance 3bFixed overhead budget variance Fixed overhead volume variance "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 $49,350 overall manufacturing cost varlance is only 10% of the $4.935,000 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: Inguts Direct materials Direct labor Variante overhead Pued over Totul and cont per unit (1) Standard Quantity Or Hours 4:50 feet 1.8 hours 3 hours 1. 8 hours Standard Price Rate 5 4,1e per fort 5 1) perhe 5 hour 3 6.50 per hour Standard Cost (y (2) $ 13,5 23.40 3.24 11. 5 The following additional information is available for the year just completed a. The company manufactured 15,000 units of product during the year b. A total of 65,500 feet of material was purchased during the year at a cost of $4.40 per foot All of this material was used to manufacture the 15,000 units produced. There were no beginning or ending inventones for the year c The company worked 30.000 direct labor-hours during the year ato direct labor cost of $12.65 per hoc d Overhead is applied to products on the basis of standard direct labor hoursData relating to manufacturing overhead costs follow Denominator activity level (direct labor. hours) Budgeted Fixed overhead costs Actual variable overhead conts incurred Actual fixed overhead costs incurred 25,000 $ 162,500 $ 57.000 $ 160,100 Required: 1 Compute the materials price and quantity variances for the year 2. Compute the labor rate and efficiency variances for the year 3. For manufacturing overhead compute a. The variable overnead tate and efficiency variances for the year, 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 effect fl.. zero variance). Input all amounts on pouve values.) 1 Materials price variance Materials quantity varianco 12 Laborate vanance Labor efficiency variance 3a Variable overhead rate variance Vanatie overhead officiency variance 30 Fred overhead budget vanance Fored over ad volume variance