Part 2 Cost variance analysis This part relates to Module 23. Ihave variance analysis support material in the Module 23 folder in course resources Gourmet, Inc. produces containers of frozen food. During October the company had the following actual production and costs. Actual Containers produced in October Variable Overhead Fixed Overhead Direct Labor cost Actual material purchased Actual Material pounds used 700 S5,700 $13,000 S80,000 Which is $28,000 Which is 4,000 Direct labor hours 15,000 pounds 14,600 pounds Overhead is budgeted and applied using direct-labor hours. Standard cost and annual budget information are as follows Standard cost per container Direct Labor Direct Material 5 hours at 20 pounds at S19 $2 S95 $40 Direct labor 5 hours Direct labor 5 hours Variable overhead at $1.50 S7.50 $3 Fixed Overhead Total at $157.50 Budgeted Monthly Fixed Overhead $12,500 Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances