3.FLEXIBLE BUDGET, DIRECT MATERIALS AND DIRECT MANUFACTORING LABOR VARIANCES Tuscany Statutary manufactures bust statues of famous historical figures. All statues arc the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2007: Expected production and sales 5,000 units Direct materials 50,000 poundsDirect manufacturing labor 20,000 hours Total fixed costs $1,000.000 Standard quantities, Standard prices, and Standard unit costs follow for direct materials and direct manufacturing labor. Standard Price Standard Quantity 10 pounds Direct materials Direct manufacturing (labor 4 hours Standard Unit Cost$10 r sound $100 $40 per hour $160 During 2007, actual numbers of units produced and sold was 6.000. Actual cost of direct materials used was $594,000, based on 54,000 pounds purchased at $11 per pound. Direct manufacturing labor-hours actually used were 25,000, at the rate of $38 per hour. This resulted in actual direct manufacturing labor costs of $950.000. Actual fixed costs were $1,005.000. There were no beginning or ending inventories. Required 1. Calculate sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor