1.	Calculate the sales-volume variance and flexible-budget variance for operating income.
2.	Compute price and efficiency variances for direct materials and direct manufacturing labor.

Verona Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017 ?(Click the icon to view the static budget data.) Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: ?(Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "O in the appropriate field. If the variance is zero, do not select a labell) ActualFlexible-Budget Flexible Sales-Volume Static Budget Budget Data Table Results Variance Variance Output units 6,800 units Expected production and sales Expected selling price per unit $ Total fixed costs 725 Direct materials Direct manufacturing labor Fixed costs Total costs Operating income $1.350,000 Print Done