AKEI is an elite desk manufacturer. At the start of May 2022, the following budgeted unit amounts (based on a standard costing system) related to its manufacture of executive desks (made out of oak):

Direct materials: 16 square meters of oak per desk at 20 per square meter Direct manufacturing labor: 3 hours per desk at 30 per direct manufacturing labor-hour

Budgeted production for May 2022 was 700 executive desks. There were no opening stocks of direct materials or finished goods on 1 May 2022. Work in progress is minimal.

Actual results for May 2022 are as follows: Direct materials purchased (12,640 square meters)....................... 259 120

Direct materials used (11,850 square meters) .............................................?

Direct manufacturing labor (2,325 hours at 31 per hour) ..........................?

Actual production in May 2022 is 750 executive desk units. The purchase price for oak wood remained unchanged throughout May 2022.

Required: A. Prepare a detailed flexible-budget variance analysis for May 2022 covering direct materials and direct manufacturing labor. B. Give two explanations for each of the variances you calculate in requirement A.