hin Inc. has provided you with the following information:

Budgeted sales $1500$ units

Budgeted selling price $$120$

Standard cost of direct materials per unit $2$ meters X $$30$ per meters $=$ $$60$

Standard quantity of direct labour per unit $1$ hours x $ $25$ per hour $=$ $$25$

Standard fixed costs $($ total$)$ $$10,000$

Actual sales $1450$ units

Actual selling price $$120$

Actual cost of direct materials per unit $1\mathrm{.}8$ meters X $$25$ per meters $=$ $$45$

Actual cost of direct labour per unit $1\mathrm{.}25$ hours x $$20$ per hour $=$ $$25$

Actual fixed costs $($ total$)$ $$10,000$

Required:

a$)$ Using the table provided for you below, prepare a performance report

including a

$$ Static budget

$$ Actual results

$$ Flexible budget

$$ Volume variance

$$ Flexible budget variance

PERFORMANCE REPORT

Static

$($ Master$)$

Actual Flexible

Budget

Volume

Variance

Flexible Budget

Variance

Sales

Variable costs

Direct materials

Direct labour

Total variable costs

Contribution margin

Fixed costs

Net income

b$)$ Compute the direct material price and quantity variances

c$)$ Compute the direct labour rate and efficiency variances