Comprehensive variance analysis review. Memflash Inc. manufactures 500 megabyte ©

; flash drives that are compatible with a popular portable storage device. Memflash sells flash Ey drives directly to computer retail chains and to direct marketing organizations that resell flash drives under their house brands. The flash drives retail for an average of $9.60 per unit, and compete with well-known brands that retail for between $12.00 and $14.40 per 2. Total static-budget variance

$652,280 U flash drive.

_ Memflash’s CFO has provided you with the following budgeted standards for the month of February 2010:

REQUIRED As the senior financial analyst, you are asked to calculate the following:LO1

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Budgeted average wholesale selling price per unit Total direct material standard cost per drive Direct manufacturing labour $4.80 $1.02 Direct manufacturing labour standard cost per hour $18.00 Average labour productivity (drives per hour) 300 Direct marketing cost per unit $0.36 Total fixed overhead $1,080,000