Problem 1 Variance Analysis (20 Points) The Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor hours (DLH). At the beginning of 2021, the Company budgeted production of 8,000 units for the period and adopted the following standards for its manufacturing costs: Cost per Input Output Unit Direct materials Direct manufacturing labor 4 lbs. at $20 per lb. 2 hrs. at $15 per hr. $ 80 30 Manufacturing overhead: Variable Fixed $8 per DLH 16 $12 per DLH 24 Standard manufacturing cost per output unit $150 Input price variances are isolated upon purchase. Input efficiency variances are isolated at the time of usage. The records for the period indicate the following: Direct materials purchased Direct materials used Direct manufacturing labor Actual variable manufacturing overhead Actual fixed manufacturing overhead Actual production 40,000 lbs. at $19.25 per lb 33,200 lbs. 15,000 hrs. at a total of $240,000 $116,000 $200,000 7,800 output units