PROBLEM APPLICATION 6: CHAPTER 23: STANDARD COST SYSTEMS, 25 POINTS. Use blue ink and present your solutions in good form in the answer sheets provided after the problems. You need to submit only the answer sheets. You need to show all necessary formulas and calculations. You need to submit the solution to this problem after Chapter 23 is completed. Hear Smart manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data Standard Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Quantity Cost 2 parts 0.02 hours8.00 pr hour 0.02 hours 10.00 per hour $ 0.15 per part Fixed Manufacturing Overhead ($28.500 for static budget volume of 95000units and 1,900 hours, or $15 per hour) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (209,000 parts@S0.20 per part) (1,600 hours @ $8.15 per hour) 41,800 13,040 9,000 26,000 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. Hear Smart's management used better quality materials during September. Discuss the trade- off between the two direct material variances