13-28 Flexible budget, direct materials, and direct manufacturing labor variances. Palermo 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 trom the static budget for 2013: Expected production and sales Total fixed costs 6.300 units $1,350,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufactur ing labor: $12 per pound $40 per hour Direct materials 14 pounds : $168 $124 Direct manufacturing labor 3.1 hours During 2013, actual number of units produced and sold was 4,800. Actua! cost of direct materials used was $813,750, based on 62,500 pounds purchased at $13.02 per pound. Direct manufacturing labor hours actually used were 17,500, at the rate of $33.48 per hour. As a result, actual direct manufactur- ing labor costs were S585,900. Actual fixed costs were $1,160,000. There were no beginning or ending inventories. 1. Calculate the sales-volume variance and flexible-budget variance for operating income 2. Compute price and efficiency variances for direct materials and direct manutacturing labor