E23-15 Preparing a flexible budget Learning Objective 1 $203,500 Op. Inc. for 55,000 units Safe Now sells its main product, ergonomic mouse pads, for $13 each. Its variable cost is $5.30 per pad. Fixed costs are $220,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $275,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 35,000 , 55,000 , and 80,000 pads. E23-19 Calculating materials and labor variances Learning Objective 3 DL Eff. Var. $1,540F Pro Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2016, using 146,000 square feet of extruded vinyl purchased at $1.05 per square foot. Production required 410 direct labor hours that cost $15.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.10 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $14.00 per hour. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Pro Fender's managers have been making trade-offs? Explain. E23-20 Computing overhead variances Learning Objective 4 1. FOH Vol. Var. $1,720U Grand Fender is a competitor of Pro Fender from Exercise E23-19. Grand Fender also uses a standard cost system and provides the following information: Grand Fender allocates manufacturing overhead to production based on standard direct labor hours. Grand Fender reported the following actual results for 2016: actual number of fenders produced, 20,000; actual variable overhead, $5,200; actual fixed overhead, $24,000; actual direc labor hours, 480. Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable