Compute the following variances and identify whether each variance is favorable or unfavorable.1. Direct Materials Price2.3.4.5.Direct Labor PriceDirect Materials Quantity $Direct Labor Quantity$Total Overhead VarianceLAtA$33675Unfavorable More Martinez Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed thefollowing per unit standard costs for 2022 for each baseball bat:Standard QuantityStandard PriceUnit Standard Cost1.2.Direct Materials2 Pounds (Aluminum)3,$4.00$8.004.Direct Labor1/2 hour$10.00$5.00In 2022, the company planned to produce 121,800 baseball bats at a level of 60,900 hours of direct labor.ManufacturingOverheadActual results for 2022 are presented below:Direct materials purchases were 224,500 pounds of aluminum which cost $931,675.Direct materials used were 224,500 pounds of aluminum.Direct labor costs were $592,900 for 60,500 direct labor hours actually worked.Total manufacturing overhead was $370,000.1/2 hour$6.00$3.00

As per the Honor code of Bartleby we are bound to give the answer of the first three sub parts only,…

Answered: More Martinez Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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