P24-3B Multicast Co. assembles TVs and uses flexible budgeting and a standard cost system. Multicast allocates overhead based on the number of direct materials parts. The company's performance report includes the following selected data: Sales (20,000 TVs x $200) Static Budget Actual Results (20,000 TVs) (22,000 TVs) $4,000,000 (22,000 TVs x $210). Variable manufacturing expenses: $4,620,000 Direct materials (200.000 parts @ $8.00) 1,600,000 (214,200 parts @ $7.85) 1,681,470 Direct labor (40,000 hr @ $10.00) 400,000 (42,500 hr @ $10.25) 435,625 Variable overhead (200,000 parts @ $2.00)... (214,200 parts @ $2.05)... 400,000 439,110 Fixed manufacturing expenses: Fixed overhead Total cost of goods sold. Gross profit. 600,000 3,000,000 $1,000,000 610,000 3,166,205 $1,453,795 Required 1. Prepare a flexible budget based on the actual number of TVs sold. 2. Compute the price variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the total variance, the flexible budget vari- ance, and the production volume variance. 3. What is the total flexible budget variance for Multicast's manufacturing costs? Show how the total flexible budget variance is divided into materials, labor, and overhead variances. 4. Have Multicast's managers done a good job or a poor job controlling material and labor costs? Why? 5. Describe how Multicast's managers can benefit from the standard costing system.