1. What type of analysis does a flexible budget performance report help management perform? 2. What is a price variance? What is a quantity variance? 3. What are the relations among standard costs, flexible budgets, variance analysis, and management by exception? 4. Bay City Companys fixed budget performance report for July follows. The $647,500 budgeted expenses include $487,500 variable expenses and $160,000 fixed expenses. Actual expenses include $158,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. Fixed Budget Actual Results Variances Sales (in units)...................................7,500 7,200 Sales (in dollars)...............................750,000 737,000 13,000U Total Expenses..................................647,500 641,000 6,500U Income from Operations................102,500 96,000 6,500 5. After evaluation Null Companys manufacturing process, management decides to establish standards of 3 hours of direct labor per unit of product an $15 per hour for the labor rate. During October, the company uses 16,250 hours of direct labor at a $247,000 total cost to produce 5,600 units of product. In November, the company uses 22,000 hours of direct labor at a $335,500 total cost to produce 6,000 units of product. (1) Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. (2) Interpret the October direct labor variances. 6. Hart Company made 3,000 bookshelves using 22,000 board feet of wood costing $226,200. The companys direct material s standards for one bookshelf are 8 board feet of wood at $12 per board foot. (1) Compute the direct materials variances incurred in manufacturing these bookshelves. (2) Interpret the direct materials variances. 7. Identify four types of specialists that you would assemble to provide information to help set the materials price and quantity standards. Briefly explain why you chose each individual