Too-Cute, Inc. makes concrete garden gnomes with the following budgeted costs based on an expected production of

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Too-Cute, Inc. makes concrete garden gnomes with the following budgeted costs based on an expected production of 12,000 units: Budgeted DM cost $5/unit (2 lbs. $2.50/lb.) Budgeted DL cost $4/unit (0.4 DLH/unit $10/DLH) Budgeted variable overhead cost $5/DLH Budgeted fixed overhead cost $2/DLH o Based on $9,600 FMOH/month, 12,000 units/month, 0.4 DLH/unit o 12,000 units x 0.4 DLH/unit = 4,800 DLH o $9,600 fixed overhead 4,800 DLH = $2/DLH Data for actual production of 10,000 gnomes in November: Materials purchased and used $52,800 for 22,000 lbs. ($2.40 per lb.) Direct labor used $51,000 for 5,000 DLH ($10.20 per DLH) Variable overhead costs incurred $23,000 Fixed overhead costs incurred $9,000 Compute and interpret the following variances for Too-Cute: a) DM price variance = Why did this variance occur? b) DM usage variance = Why did this variance occur? c) DL rate variance = Why did this variance occur? d) DL efficiency variance = Why did this variance occur? e) VMOH spending variance = Why did this variance occur? f) VMOH efficiency variance = Why did this variance occur? g) FMOH spending variance = Why did this variance occur? h) FMOH volume variance = Why