A B Surrey Bikes, Inc. manufactures double bench bikes for resorts and other vacation properties. Management now wants the accountants to complete an analysis to compare the budgeted costs to standard costs for 2022. During the year 2022, the company completed 680 bikes. Let's discuss changes from budget and standard that occurred during 2022. Overall, the company was able to increase several efficiencies. However, the company also experienced some increased costs. Use this information to complete the CH24 Budet Variances tab; the green section. Electrical Parts Direct Materials The purchase price increased by $2.50 per set. There was also an increase in freight of by $0.25 per set. Wheels and Tires Direct Materials: The company was able to secure the same materials from a new supplier at a cost of $9/set. However, freight cost increased by $0.50 per wheel and tire set. Metal Parts Direct Materials: The company was also able to reduce the amount of material used for each bike by 3 pounds. The acual cost of the metal parts was $0.52 per pound. Canvas Fabric Direct Materials: The company was also able to reduce the amount of material used for each bike by one-half a yard. The acual cost of the canvas fabric was $4.95 per yard. Direct labor: Employees were tasked with increasing equipment assembly and decreasing labor hours. They were successful in 2022 and brought hours down by 5/hours/unit! The company provided a $1/hour raise! This also lead to an increase of $0.25/hour in payroll taxes. Manufacturing overhead: There were no changes in manufacturing overhead, no variance needs to be computed Using this information, computer the budget variances incurred during 2022. Surrey Bikes, Inc. manufactures double bench bikes for resorts and other vacation properties. Management is preparing the budget 2022 and has asked for the accountants help. Sales in 2021 were 600 units. They are bringing on a new customer and management is expecting a 10% increase in 2022. They will increase the selling price to $3,300 this year to account for anticipated rising costs. Expected sales units Unit selling price Total sales Surrey Bikes, Inc. Sales Budget For the Year Ended December 31, 2022 At the end of 2021, there were no bikes left in inventory to sell in 2022. Management would like to start 2022 with inventory on hand. They would like to budget to end 2022 with 60 completed and finished bikes. Surrey Bikes, Inc. Production Budget For the Year Ended December 31, 2022 Expected sales units Add: Desired ending finished goods units (ending balance 2022) Total required units Less: Beginning finished goods units (ending balance 2021) Required production units