Calculate Direct Material and Direct labour Variances, tell what is flexible budget variance for DM and DL Answer the following questions using the information below. Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2008, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. Budgeted quantity Budgeted price Direct materials 1.5 pounds $7.25 per pound Direct labor 0.25 hours $14.00 per hour During April, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour