First, create a flexible budget for Pottery Inc. assuming 36,000 units produced.

based on the flexible budget, calculate:

1. direct materials price variance

2. direct materials quantity variance

3. total direct materials variance

4. direct labor price variance

5. direct labor quantity variance

6. total direct labor variance

hint: think about standard costs and standard quantity for 36,000 units.

Note: Quantity amounts are in lbs. for Direct Materials and hours for Direct Labor