Headset manufactures headphone cases. During September 2018, the company produced 106,000 cases and recorded the following cost data:

Requirements
1. Compute the cost and efficiency variances for direct materials and direct labor.
2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.
3. Headset's management used better-quality materials during September. Discuss the trade-off between the two direct material variances?

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Standard Cost Information Cost Quantity Direct Materials Direct Labor 2 parts 0.02 hours 0.02 hours $0.16 per part 8.00 per hour 11.00 per hour Variable Manufacturing Overhead Fixed Manufacturing Overhead ($30,720 for static budget volume of 96,000 units and 1,920 hours, or $16 per hour) Actual Information Direct Materials (209,000 parts @ $0.21 per part) (1,620 hours @ $8.10 per hour) $ 43,890 13,122 Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 9,000 30,000