ABC Company uses a standard cost system. The month's data regarding its product in actual and standard as follow: Actual Standard Direct material cost per pound ($) 0.97 Material purchased and used in total output (pound) Direct labor rates per unit of input ($) 3,300 7.70 Direct labor hours incurred in total output (hours) 5,500 Variable overhead cost incurred in total ouput ($) 4,620 Direct material cost per pound ($) Direct material used in a unit (pound) Direct labor rates per unit of input ($) Direct labor used in a unit (hour) Variable overhead cost in total ($) 1.00 3.00 8.00 5.00 4,000 Fixed overhead cost incurred in total output($) *The units produced for actual output during the month were 1,000. 7,200 Fixed overhead cost in total ($) 7,350 Requirement 1. Prepare the following schedules and all variances, and analyze the results. Supporing Schedule. Actual and Standard data. Standard Data Direct material cost ($, pound) Direct labor cost ($, hour) per unit of Input Standard Price Standard Quantity per unit Units of Actual Output level 1.00 1.60 1,000 1,000 Standard Quantity of Output level achieved Price and Quantity Actual Price of Acutal and Standard per unit of Input Actual Quantity used for Output Standard Price per unit of Input Direct material cost ($, pound) Direct labor cost ($, hour) Variable Overhead ($, hour*) *Cost driver of Variable Overhead: Direct labor hours Flexible Budget Variances. Flexible Budget Variance Direct material cost ($, pound) Direct labor cost ($, hour) Variable overhead cost ($, hour) Fixed overhead cost Actual Cost Flexible Budget Incurred: Variance F/U Flexible Budget: Price (Rate, Spending) and Quantity (Usage, Efficiency) Variances. Variances Direct material cost Direct labor cost Fixed overhead cost Variable overhead cost Price (Rate, Actual Cost Incurred Spending) Variance F/U Standard Prices x Actual Quantities used for Output Quantity (Usage, Efficiency) Variance Flexible Budget F/U Flexible Budget Variances F/U Requirement 2. You are an upper manager of the production manager who is reponsible for the budget variances. Requirement 2-1. Analyze the direct material cost variances and give the production manager a right feedback related to the price and quantity variances. Requirement 2-2. Analyze the direct labor cost variances and give the production manager a right feedback related to the rate and usage variances. Requirement 2-3. Analyze the variable overhead cost variances and give the production manager a right feedback related to the spending and efficiency variances. Requirement 2-4. Analyze the fixed overhead cost variances and give the production manager a right feedback related to the spending and efficiency variances