Emerald Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2020:

Expected production and sales	7,000 units
Expected selling price per unit	$680
Total fixed costs	$1,400,000

Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor:

	Standard Quantity	Standard Price	Standard Unit Cost
Direct materials	10 pounds	$8 per pound	$80
Direct manufacturing labor	3.7 hours	$50 per hour	$185

During 2020, actual number of units produced and sold was 4,800, at an average selling price of $720. Actual cost of direct materials used was $392,700 (66,000 pounds at $5.95 per pound). Actual direct manufacturing labor costs were $878,400 (18,300 actual direct manufacturing labor-hours at $48 per hour). Actual fixed costs were $1,170,000. 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.