2. The following information is from ABC Manufacturing's static budget for 2020: Expected production and sales : 60,000 units Expected selling price per unit : $300 Expected variable manufacturing overhead costs : $1,800,000 ($15/direct manufacturing labour hour, 120,000 hours) Expexted total fixed manufacturing costs : $2,500,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: Standard Quantity Standard Price Standard Unit Cost Direct materials 4 kgs $25 per kg $100 Direct manufacturing labor 2 hours $25 per hour $50 During 2020, actual number of units produced and sold was 50,000, at an average selling price of $310. Actual cost of direct materials used was $5,040,000, based on 210,000 kgs purchased at $24 per kg. Direct manufacturing labor-hours actually used were 105,000, at the rate of $26 per hour. As a result, actual direct manufacturing labor costs were $2,730,000. Actual variable overhead costs were $1,680,000 and actual fixed costs were $2,450,000. There were no beginning or ending inventories. i. Calculate the flexible-budget variance for operating income. (20 points) Actual Result Flexible- Budget Variances Flexible Budget Units Sold Revenues Variable Costs: Direct Materials Costs Direct Labor Costs Variable Manufacturing 0/H i. Calculate the flexible-budget variance for operating income. (20 points) Actual Flexible- Budget Variances Result Flexible Budget Units Sold Revenues Variable Costs: Direct Materials Costs Direct Labor Costs Variable Manufacturing O/H Total Variable Costs Contribution Margin Fixed Manufacturing O/H Operating Income ii. Compute price and efficiency variances for direct materials and direct manufacturing labor. (20 points) Direct Materials Price Varience Direct Materials Efficiency Varience Direct Labor Price Varience Direct Labor Efficiency Varience