are standards used in budgetary performance ation? hat are the two variances between the ual cost and the standard cost for direct 26. Would the use of standards be appropriate in a nomn. assembly workers in this plant are covered by union contracts, so there should be no labor variances- the controller's remark correct? Discuss. terials? cuss some possible causes of these variances. manufacturing setting, such as a fast-food restaurang es E13-1 Flexible budget for selling and administrative expenses Fuller Enterprises uses flexible budgets that are based on the following data Sales commissions Advertising expense Customer support expense Office salaries expense Miscellaneous administrative expense Research and development expense 6% of sales 20% of sales $2,000 plus 16% of sales $30,000 per month $3,000 plus 5% of sales $10,000 per month Prepare a flexible selling and administrative expenses budget for July for sales volumes of $600,000, $800,000, and $1,000,000. (Use Exhibit 5 as a model.)