1. Indicate whether each of the following variances is favorable or unfavorable. The first one has been done as an example. Item to classify Standard Actual Type of Variances materials cost $2.90 per pound $3.00 per pound materials usage 91,000 pounds 90,000 pounds labor cost $10.00 per hour $9.60 per hour labor usage 61,000 hours 61,800 hours fixed cost spending $400,000 $390,000 fixed cost per unit (vol) $3.20 per unit $3.16 per unit sales volume 40,000 42,000 units sales price $3.20 per unit $3.63 per unit Problem 2. Compute variances for the following items and indicate whether each variance is favorable (f) or unfavorable (u) Budget Actual Variance F or U SalesPrices $650 $525 Sales revenue $580,000 $600,00 Cost of Goods Sold $385,00 $360,000 Material Purchase at 5,000 pounds $275,000 $280,000 Materials Usuage $180,000 $178,000 Wages at 4,000 hours $60,000 $58,700 Labor usage at $16 per hour $96,000 $97,000 Research & Development expense$22,000 $25,000 Selling and administrative expenses$49,000 $40,00 Problem 3 Sexton Manufacturing Company established the following standard price and cost data. Sales price $8.00 per unit Variable manufacturing cost 4.00 per unit Fixed manufacturing costs 3,000 total Fixed selling and administrative costs 1,000 Sexton planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Determining sales and variable cost volume variances a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable (F) or unfavorable (U) c. Comment on the usefulness of the variances with respect to performance evaluation and identify the member of the management team most likely to be responsible for these variances. d. Determine the amount of fixed cost that will appear in the flexible budget. e. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity. Assuming Sexton uses information in the master budget to price the company's product, comment on how the volume could affect the company's profitability Problem 4 Sexton Manufacturing Company established the following standard price and cost data. Sales price $8.00 per unit Variable manufacturing cost 4.00 per unit Fixed manufacturing costs 3,000 total Fixed selling and administrative costs 1,000 Sexton planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units