Flexible budget (Refer to data in Exercise 7-26). Suppose the static budget was for 2,500 units of

Question:

Flexible budget (Refer to data in Exercise 7-26). Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report:

Actual Results $18,870 Static Budget Variance $6,130 F $3,680 F Direct materials Direct manufacturing labor $25,000 $ 8,

What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing labor? Based on your results, explain why the static budget was not achieved.