Betsy Stalling manufactures rubber mats for use as barn footings for animal stalls. For the month of March 2021, management has projected sales of 6,000 mats, selling at a price of $40/mat. Fixed costs include fixed manufacturing overhead budgeted at $9,000, advertising budgeted at $7,000 for the month and office rent budgeted at $8,000 for the month. The budgeted variable cost standards are shown below. Variable overhead is allocated based on labor hours.

Budgeted Cost StandardsBudgeted QuantityBudgeted PriceBudgeted Variable Cost, per matDirect Materials6 lbs. rubber$1 per lb.$6.00Direct Labor0.2 hours$13 per DLH$2.60Variable Manufacturing Overhead.02 hours$3 per DLH$0.60Total Variable Standard Cost, per Unit$9.20

For this assignment, let's assume no variable sales and administrative costs.

a) March 2021 Static Budget

b) Toward the end of March, management reported that they will sale more mats than anticipated, Flexible budget at 6,500 units, 7,000 units, 7,500 units AND 8,000 units

c) At the end of March, management reported the following actual detailed information:

Total sales in units7,500 matsTotal sales in dollars$307,500Total material used46,500 lbs.Total material value$58,125Total hours worked2,250 hrs.Total wages paid$28,125Total variable overhead$5,625

NOTE: All the fixed costs were the same as budgeted.

i) Actual Versus Static Budget Variance for March 2021

II) Actual Versus Flexible Budget Variance for March 2021