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Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual Price $300 $350 Sales volume in units 60 55 Unit VC $100 $220 Fixed costs $200,000 $220,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance OF OU sales volume variance F OU fixed cost variance F OU b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter For U after the number. sales price variance $ sales volume variance $ fixed cost variance $ The budgeted and actual data for direct materials and labor are as follows: Budgeted Actual DM price $1 per pound $0.75 per pound DM quantity per unit 6 pounds per unit 7 pounds per unit DL price $8 per hour $11 per hour DL quantity per unit 0.3 hours per unit 0.4 hours per unit Actual sales volume is 100 units. Budgeted sales volume is 80 units. a) Without computations, characterize the following variances as favorable or unfavorable: input price variance for DM OF OU input efficiency variance for DM OF OU input price variance for DL OF OU input efficiency variance for DL OF OU b) Compute the input price and input efficiency variances for DM and DL. As a preliminary step, compute actual input quantity (total pounds or hours we actually used) and flexible budget input quantity (total pounds or hours we should have used actual output): actual input quantity for DM = pounds flexible budget input quantity for DM = pounds actual input quantity for DL = hours flexible budget input quantity for DL = hours Next, compute the variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter For U. input price variance for DM = $ input efficiency variance for DM = $ input price variance for DL = $ input efficiency variance for DL = $