"Wow, this is great! Not only did our sales team do a good job in meeting our sales targets, but our manufacturing group dida good job in controlling costs, said Bob Menlo, the President of Menlo Inc. Our $18.300 of overall manufacturing cost variance is only 1.2% of the $1.536,000 standard cost of our products made this past year. That's well within our target metric for variance control. It looks to me that everyone is well positioned for a bonus this year." Menlo Inc. produces and sells a single product. The standard cost card for the product follows: Ow fel Spa De Mon Tags Van Charles 553 Additional cost data relative to the year's activities includes the following - The company manufactured 30,000 units of products during the year - A total of 64,000 feet of material was purchased during the year at a cost of $8.55 per foot. All of this material was used to manufacture the 30,000 units produced There was no change in ending inventory for the year The company worked a total of 43,500 direct labor hours during the year at a direct labor cost of $150 per hour - Overhead is applied to products on the basis of standard direct labor hours. Data relating to manufacturing overhead costs follow below: Budget Find the com Notable Oil Center 10 Required: You were asked to prepare a complete assessment of the total $18.300 variance to provide senior management with deeper insight 1. Compute the materials price and quantity variance for the 2. Compute the labor rate and efficiency variance for the year. 3. For manufacturing overhead you need to compute the following: 1. The variable overhead rate and efficiency variance for the year b. The fixed overhead budget and volume variances for the year 4. Totals the variances and compare the same with the $18,300 discussed by Mr. Menlo. Do you agree that bonuses should be given to everyone for good cost control during the year? Explain. "Wow, this is great! Not only did our sales team do a good job in meeting our sales targets, but our manufacturing group dida good job in controlling costs, said Bob Menlo, the President of Menlo Inc. Our $18.300 of overall manufacturing cost variance is only 1.2% of the $1.536,000 standard cost of our products made this past year. That's well within our target metric for variance control. It looks to me that everyone is well positioned for a bonus this year." Menlo Inc. produces and sells a single product. The standard cost card for the product follows: Ow fel Spa De Mon Tags Van Charles 553 Additional cost data relative to the year's activities includes the following - The company manufactured 30,000 units of products during the year - A total of 64,000 feet of material was purchased during the year at a cost of $8.55 per foot. All of this material was used to manufacture the 30,000 units produced There was no change in ending inventory for the year The company worked a total of 43,500 direct labor hours during the year at a direct labor cost of $150 per hour - Overhead is applied to products on the basis of standard direct labor hours. Data relating to manufacturing overhead costs follow below: Budget Find the com Notable Oil Center 10 Required: You were asked to prepare a complete assessment of the total $18.300 variance to provide senior management with deeper insight 1. Compute the materials price and quantity variance for the 2. Compute the labor rate and efficiency variance for the year. 3. For manufacturing overhead you need to compute the following: 1. The variable overhead rate and efficiency variance for the year b. The fixed overhead budget and volume variances for the year 4. Totals the variances and compare the same with the $18,300 discussed by Mr. Menlo. Do you agree that bonuses should be given to everyone for good cost control during the year? Explain