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HOHOHO Inc. has provided you with the following information: Budgeted sales 1500 units Budgeted selling price $120 Standard cost of direct materials per unit 2

HOHOHO 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 hour 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

1.8 meters X $25 per meters = $45

Actual cost of direct labour per unit

1.25 hours x $20 per hour = $25

Actual fixed costs ( total)

$10,000

Required:

a) Using the table provided for you, prepare a performance report including a
Static budget
Actual results
Flexible budget
Volume variance
Flexible budget variance
b) Compute the direct materials price and quantity variances
c) Compute the direct labour rate and efficiency variances

a) 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) Direct materials price and quantity variances

AQ x APAQ X SPSQ X SP

c) Direct labour rate and efficiency variances

AQ x ARAQ X SRSQ X SR

please help me solve this

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