Actual amounts in the income statement are as follows:Actual Flexible BudgetSales $375,000 ?Variable Expenses: Variable cost of goods sold 258,348.75 ? Variable selling and administrative expense 19,875 ? Total variable expenses 278,223.75 ? Contribution Margin 96,776.25 ? Fixed expenses: Manufacturing overhead 50,000 ? Selling and administrative expense 15,000 ? Total fixed expenses 65,000 ? Net Operating income 31,776.25 ? Question1. Compute flexible budget for 7,500 products.salesvariable cost of goods soldVariable selling and administrative expenseTotal Variable expensesContribution MarginTotal fixed expensesNet operating income2. Compute Materials price variance3. Compute Materials quantity variance4. Compute direct labor rate variance5. Compute direct labor efficiency variance6. Compute variable overhead rate variance7.Compute variable overhead efficiency variance8. Compute the direct labor spending variance9. Compute the direct labor spending variance10. Compute Variable manufacturing overhead spending variance

Midas Toy Company is very keen in keeping their product's cost as closer to standard as possible. After reviewing the income statement, the following were noticed: a. The company produced 7,500 units of products. b. Standard cost card revealed the following: Standard Qty or Hours Standard Price or Rate Standard Cost Direct materials 4.25 units of raw materials $5.00 $21.25 Direct labor 0.75 hours $16.00 $12.00 Variable manufacturing overhead (based on machine hours) 0.25 hours $3.00 $0.75 Total standard cost $34.00 c. Variable selling and administrative expenses is $2.65 per unit. d. Fixed manufacturing overhead and fixed selling and administrative expenses is $60,060 and $15,000 respectively. e. Selling price per unit is $50. Additional information that was noted down during the period were: 1. Purchased 30,000 units of raw materials at a cost of $4.85 per raw material. 2. Only 32,000 units of raw materials were used in production. (Finished goods and work in process inventories were insignificant and can be ignored.) 3. Only a total of 5,615 hours were rendered at a cost of $17.25 per hour. 205 Window 4. Actual variable manufacturing overhead of $6,290 and a total of 2,000 machine hours 68'C 17:50