Flexible budget (continuation of 7-29 and 7-30). 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:

REQUIRED What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing labour? Based on your results, explain why the static budget was not achieved.LO1

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Actual Static Results Budget Variance Direct materials $18,870 $25,000 $6,130 F Direct manufacturing labour 8,820 12,500 3,680 F