BadSound manufactures headphone cases. During September 2011, the company produced and sold 105,000 cases and recorded the following cost data:

Standard Cost Information

Quanitity Price

Direct Materials 2 Parts 0.15 per part

Direct Labor 0.02 hours 9.00 per hour

Variable manufacturing overhead .02 hours 9.00 per hour

Fixed manufacturing overhead ($28,000 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour)

Actual Information

Direct Materials (235,000 parts @ $0.20 per part = 47,000)

Direct Labor (1,700 hours @ $9.15 per hour = $15,555)

Manufacturing overhead $61,000

1.)For manufacturing OH, compute the total variance, the flexible budget variance and the production volume variance.

2.) Prepare the standard cost income statement with ACTUAL sales revenue, less Cost of Goods Sold at Sstandard and adjusting that to actual.