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Harrison, Inc. produces packaged peanut butter cracker snacks that are sold in vending machines and had the following data available: Budget Actual $ 63,500 $ 66,200 Sales Less operating costs Sales salaries Advertising 4,800 9,700 5,200 8,900 Less production expenses Direct materials Direct labor Variable overhead Rent on equipment 4,160 8,960 13,900 5,300 4,925 9,375 12,400 4,900 Income from operations $ 16,680 $ 20,500 Required: A. Complete the performance report: speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances B. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 128,000 units were produced: Standards Actual Results Direct materials Each unit should have 1/8 pound of Actual production used 19.700 pounds direct materials purchased at 80.26 per of direct materials at an average cost of pound. $0.25 per pound Direct labor Each unit should be produced in 21 Actual production required 750 direct seconds at a direct labor cost of $12 labor hours at an average cost of per hour $12.50 per hour. Calculate the price and quantity variance for direct materials and direct labor; as needed, round final calculations 1.e. each variance) to the nearest whole dollar C. Given your results to part B above, speculate on a possible cause for each price and quantity variance and suggest a follow-up action for each variance

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