Harv Busta owns and operates a Wilderness Canoes a small company that manufactures one model of fiberglass canoes built of the commercial expedition and tourism industry. The following information relates to budgeted and actual production and sales for Wilderness Canoes during 2018.

Standard Cost for one Canoe is as follows:

Direct Material: Resin 8 gallon @ $20.00/gallon $160.00

Direct labor: 2 Hours @ $30.00/hour $60.00

Variable overhead: $8.00/ direct labor hour $16.00

Fixed overhead: $180,000 per year (applied using direct labor hours) $45/dlh = $180,000/4000 dlh

Budgeted Production and sales: 2000 canoes

Budgeted selling price: $500.00/ canoe

Other information:

Variable selling and administrative costs:

Shipping $60 per canoe

Commissions (4% of selling price) $20 per canoe

Fixed selling and administrative costs: $125,000 per year

Wilderness Canoes planned sales for 2018: 2,000 canoes

Estimated 2018 industry sales for similar types of canoes: 10,000 canoes

During 2018:

Wilderness canoes produced and sold = 2,205 canoes. The total marker for similar commercial canoes was 9,800.

Actual selling price = $520.00/ canoe

17,000 gallons of fiberglass compound were puchased costing $338,250 and 16,758 gallows were used in production.

Direct labor costs for 2018 was $130,977 and 3,969 hours direct labor hours were worked during the year.

Actual Manufacturing overhead costs incurred in 2018 were:

Variable overhead: $36,300

Fixed over head: 238,875

Total: $275,175

Actual selling and administrative costs incurred in 2018 were:

Shipping costs: $136,710

Commissions: 45,864

Fixed Selling and Admin. $128,500

1.) Develop a flexible budge profit plan (income statement) for 2018 listing all revenues and expenses in a contribution margin format

2.) Determine the sales price and sales volume variance (calculate the sales volume variance based on budgeted contribution margin)

3.)determine the market share and market size variances based on contribution margin

4.) determine the material price and efficiency variances for resin. The price variance should be computed on materials purchased.

5.) Determine the direct labor price and efficiency variances

6.) compute the variable manufacturing overhead spending variance

7.) compute the fixed manufacturing overhead budget variance