ws filled ine- * 8-40 Review of Chapters 7 and 8, 3-variance analysis (CPA adapted) The Beal Manufacturing Company's costing system has two direct-cost categories direct materials and direct manufacturing labor Manufacturing overhead (both variable and foxed) is allocated to products on the basis of standard direct manufacturing labor-hours (DLH). At the beginning of 2007, Beal adopted the following standards for its man ufacturing costs Cost per rd to d Input Output Unit Direct materials 3 lbs. at SS per lb $ 15.00 Direct manufacturing labor 5 hrs at $15 per hr. 75.00 Manufacturing overhead Variable S6 per DLH 30.00 Fixed S8 per DLH 40.00 Standard manufacturing cost per output unit $160.00 The denominator level for total manufacturing overhead per month in 2007 is 40,000 direct manufactur- ing labor-hours. Beal's flexible budget for January 2007 was based on this denominator level. The records for January indicated the following: Direct materials purchased 25,000 lbs. at $5.20 per lb. Direct materials used 23,100 lbs. Direct manufacturing labor 40,100 hrs. at S14.60 per hr Total actual manufacturing overhead (variable and fixed) $600,000 Actual production 7,800 output units 1. Prepare a schedule of total standard manufacturing costs for the 7,800 output units in January 2007 2. For the month of January 2007, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance 0 5 Required