At the beginning of 2012 DDC budgeted annual production of 400000 doorknobs and adopted the following standards for each doorknob:Input Cost per doorknobDirect materials(brass) 0.3 lb.@$10/lb $3.00 Direct manufacturing labor 1.2 hours@$20/hour 24.00Manufacturing overhead:Variable $6/kg*0.3 kg 1.80Fixed $15/kg.*0.3 kg 4.50Standard cost per doorknob $33.30.Actual results for April 2012 were :Production 35000 doorknobsDirect materials purchased 12000 lb. at $11/kg Direct material used 10450 kgDirect manufacturing labor 38500 hours for $808500Variable manufacuting overhead $64150Fixed manufacturing overhead $152000RequiredFor the month of April compute the following variances indicating whether each is favorable(F) or unfavorable(U):Direct materials price variance(based of purchases)Direct materials efficiency varianceDirect manufacturing labor price varianceDirect manufacturing labor efficiency varianceFixed manufacturing overhead spending variance
