1-

Mr. Sea manufacturers diving suits. During April 2020, the company produced 5,000 units and recorded the following direct materials standards and actual data:

Standards information Actual information

Direct Materials quantity 5 peace per units 5.25 peace per units

Direct materials cost $ 0.18 per peace $ 0.20 per peace

The direct materials cost variance is

2-

The following is a part of the flexible budget performance report for K-Town constructions Co.

	Actual results	Flexible budget	Static budget
Units	100,000 units	100,000 units	125,000 units
Sales revenues	$ 215,000	?	$ 281,250
Variable expenses	$ 120,000	?	$ 121,000
Fixed expenses	$ 30,000	?	$ 40,000

Sales revenues for flexible budget should equal to: