x= Mcknight manufactures colfee mugs that it sells to other companies for customizing with their own logos. Mcknight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 60,100 coffee mugs per month: EEA (Click the icon to view the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether overhead; SC = standard cost; SQ = standard quantily.) Direc Direc Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identily whether each variance is favorable SQ= standard quantity.) Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, Inclucing the related variances, (Record Bepin by journalbing the purchase of direct materlals, hcluding the related varlance. (Propare a singlo compound joumal entry) x= Mcknight manufactures colfee mugs that it sells to other companies for customizing with their own logos. Mcknight prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 60,100 coffee mugs per month: EEA (Click the icon to view the cost data.) Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether overhead; SC = standard cost; SQ = standard quantily.) Direc Direc Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identily whether each variance is favorable SQ= standard quantity.) Requirement 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, Inclucing the related variances, (Record Bepin by journalbing the purchase of direct materlals, hcluding the related varlance. (Propare a singlo compound joumal entry)