The Kumar Ltd Manufacturing Company's costing system has two direct cost categories: direct materials and direct manufacturing labour. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labour-hours (DLH). At the beginning of 2024, Kumar Ltd adopted the following standards for its manufacturing costs:

Input Cost per output unit

Direct materials 5.5 kg $ 3.6 per kg

Direct manufacturing labour. 3.7 hours $ 17.6 per hour

Manufacturing overhead:

Variable $9.6 per DLH

Fixed $9.6 per DLH

Standard manufacturing cost per output unit $ 157.07

The denominator level for total manufacturing overhead per month in 2024 is

42 735 direct manufacturing labour-hours. Kumar Ltd Manufacturing's flexible budget for January 2024 was based on this denominator level. The records for January indicated the following:

Direct materials purchased 36 370 kg at $4.10 per kg

Direct materials used: 33 660 kg

Direct manufacturing labour. 34 600 hours at $23.4 per hour

Total actual manufacturing overhead: $586 625

(Variable plus Fixed)

Actual production 8 380_ output units

Required

1. Prepare a schedule of total standard manufacturing costs for the

8 380_output units in January 2024.

2. For the month of January 2024, calculate the following variances, indicating whether each is favourable (F) or unfavourable (U):

a. direct materials price variance, based on purchases.

B direct materials efficiency variance

C direct manufacturing labour price variance

d. direct manufacturing labour efficiency variance

e. total manufacturing overhead spending variance

f. variable manufacturing overhead efficiency variance

g. fixed overhead production-volume variance.