SkiTwin Corporation uses a standard cost system to assist in its manufacture of water skis, and uses a standard cost system to assist in its manufacture of water skis, na d uses direct labour hours to apply its overhead. The company controller provides you with the following information on the results of its most recent year end.

There were no beginning or ending work-in-process inventories, but there were 4,000 units of finished goods at the end of the year.

Required:

a. Calculate the standard cost of goods sold for the year just ended.

b. Calculate the direct materials flexible budget variance.

c. Calculate the direct labor efficiency variance.

Units Produced Units Sold Direct Materials Direct Labour Production Costs: Direct Materials Direct Labour Variable Overhead Fixed Overhead Budget 100,000 100,000 50,000 kgs 40,000 DLHS $200,000 $500,000 $80,000 $160,000 Actual 99,000 96,000 47,840 kgs 37,720 DLHS $207,404 $471,500 $84,640 $162,000