$7-30$ Flexible budget, direct materials, and direct manulacturing lahor varlances. Tuscany

Statuary manufactures buss statues of famous historical figures. All statues are the same size.

Each munil requires the same amount of resources. The following information is from the static budget for $2011$ :

Expected production and sales $6,000$ units

Direct materials $,72,000$ pounds

Direct manufacturing labox $,21,000$ hours

Total fixed custs

$$1,200,000$

Standard quantitics, standand prices, and standard unat eowis follow for dircet materials and direct manufacturing labor:

Direct materials

Standard Quantity

$12$ pounds

$3\mathrm{.}5$ inours

Standard Price

Standard Price Standard Unit Cost $$10$ per pound $$50$ per hour $$120$

$$175$ During $2011,$ actual number of units produced and wid wis $5,400.$ Actual cost of dired maledals used wound. Dired mamulacturing beginning or ending inventorics.

Calculate the sales$-$volume vanamee and flexible$-$budget warianec for operating income.

Compute price$-$and efficiency variances for direct materials and direct manufacturing labor.