Problem 5: Variance Analysis (1 Points) Eddie Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Fixed overhead Standard Quantity Standard Price or Hours Per Unit or Rate 2.5 pounds $6.00 per pound 0.5 hours $16.00 per hour 0.5 hours $9.00 per hour 0.5 hours $12.00 per hour Standard Cost Per Unit $15.00 $8.00 $4.50 $6.00 In January, the company's budgeted production was 20,000 units, and the budgeted fixed overhead was $120,000. The company applies both variable and fixed overhead on the basis of direct labor hours. The actual production was 18,000 units in January. The company used 36,000 pounds of the direct material and 8,400 direct labor hours to produce this output. In January, the company purchased 50,000 pounds of the direct material at a cost of $315,000. The actual direct labor cost was $1,428,000, the actual variable overhead cost was $72,240, and the actual fixed overhead cost was $125,000 (a) What was the amount of the materials price variance? Indicate whether the variance is favorable (F) or unfavorable (U). $ points) (b) What was the amount of the labor efficiency variance? Indicate whether the variance is favorable (F) or unfavorable (U). (3 points) (c) What was the amount of the variable overhead rate variance? Indicate whether the variance is favorable (F) or unfavorable (U). (3 points) (d) What was the amount of the fixed overhead budget variance? Indicate whether the variance is favorable (F) or unfavorable (U). (2 points)