7-34 Flexible budget, direct materials, and direct manufacturing labor variances. Milan Statuary manu- factures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2020: Expected production and sales 6,100 units Expected selling price per unit $ 700 Total fixed costs $1,350,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manu- facturing labor: Direct materials Direct manufacturing labor Standard Quantity 16 pounds 3.8 hours Standard Price $14 per pound $30 per hour Standard Unit Cost $224 $114 During 2020, actual number of units produced and sold was 5,100, at an average selling price of $730. Actual cost of direct materials used was $1,149,400, based on 70,000 pounds purchased at $16.42 per pound. Actual direct manufacturing labor-hours were 17,000, at the rate of $33.70 per hour. As a result, actual direct manu- facturing labor costs were $572,900. Actual fixed costs were $1,200,000. 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 manufacturing labor