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In: AccountingButrico Manufacturing Corporation uses a standard cost system,records materials price variances when direct materials are...Butrico Manufacturing Corporation uses a standard cost system,records materials price variances when direct materials arepurchased, and prorates all variances at year-end. Variancesassociated with direct materials are prorated based on the balancesof direct materials in the appropriate accounts, and variancesassociated with direct labor and manufacturing overhead areprorated to Finished Goods Inventory and to Cost of Goods Sold(CGS) on the basis of the relative direct labor cost in theseaccounts at year-end.The following information is for the year ended December 31:The company had no beginning inventories and no endingWork-in-Process (WIP) Inventory. It applies manufacturing overheadat 80% of standard direct labor cost.Finished goods inventory at 12/31:Direct materials$85,500Direct labor130,400Applied manufacturing overhead104,700Direct materials inventory at 12/3165,300Cost of goods sold for the year ended 12/31:Direct materials$352,100Direct labor740,600Applied manufacturing overhead592,500Direct materials price variance (unfavorable)11,100Direct materials usage variance (favorable)15,300Direct labor rate variance (unfavorable)19,900Direct labor efficiency variance (favorable)5,500Actual manufacturing overhead incurred691,300Required:1. Compute the amount of Direct Materials Price Variance to beprorated to Finished Goods Inventory at December 31.2. Compute the total amount of direct materials cost inthe Finished Goods Inventory at December 31, after all materialsvariances have been prorated.3. Compute the total amount of direct labor cost in theFinished Goods Inventory at December 31, after all variances havebeen prorated.4. Compute the total Cost of Goods Sold (CGS) for the year endedDecember 31, after all variances have been prorated.