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 8.000 units

Expected selling price per unit $750

Total fixed costs $1,500,000

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

Standard quantity Standard cost Standard unit cost

Materials 10 pounds $10 per pound $100

Direct manufacturing labor 3.5 hours $56 $196

During 2020, actual number of units produced and sold was 5,000 at an average selling price of $720. Actual cost of direct materials used was $440,000 (55,000 pounds at $8 per pound). Actual direct manufacturing labor cost was $1,421,000 (29,000 hours at $49 per hour). Actual fixed costs were $1,450,000. There were no beginning inventories.

Required:

1. Calculate the sales volume variance and the flexible budget variance for operating income.
2. Present the price and efficiency variances for direct materials and direct labor