e Palermo Stary manufactures bust states of famous historical figures. All stats are the samese Each unt requires the same amount of resources. The following information is from the static budget for 2017: m (Click the loon to view the static budget data) Standard quantities, standard prices and standard unit cost follow for direct mananas and direct manufacturing labor Click the icon to view the data) Read the requirements Requirement 1. Calculate the sales volume variance and fexible-budget variance for operating income Begin with the actual result, then complete the flexible budget columns and the static budget columns Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter in the appropriate field. If the variance is zero, do not select a label.) Output units Revenues Direct materiais Direct manufacturing labor Fwd costs Total costs Operating income Expected production and sales Expected selling price per unit Total fixed costs $ $ 6,400 units 750 1,350,000 Direct materials Direct manufacturing labor Standard Quantity 14 pounds 3.1 hours Standard Price $12 per pound $40 per hour Standard Unit Cost $168 $124 During 2017, actual number of units produced and sold was 4,800, at an average selling price of $790. Actual cost of direct materials used was $813,750, based on 62,500 pounds purchased at $13.02 per pound. Direct manufacturing labor-hours actually used were 17,500, at the rate of $33.48 per hour. As a result, actual direct manufacturing labor costs were $585,900. Actual fixed costs were $1,200,000. There were no beginning or ending inventories. 1. Calculate the sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor