ible budget, direct materials, and direct manufacturing labor variances. Milan Statuary t statues of famous historical figures. All statues are the same size. Each unit requires the 7-29 Flexi manufactures bust e amount of resources. The following information is from the static budget for 2014: Expected production and sales Expected selling price per unit Total fixed costs 6,100 units S 700 S1,350,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manu- facturing labor: Standard Price $14 per pound S 30 per hour Standard Unit Cost $224 $114 Standard Quantity 16 pounds 3.8 hours Direct materials Direct manufacturing labor During 2014, actual number of units produced and sold was 5,100, at an average selling price of $730. Actual cost of direct materials used was $1,149,400, based on 70,000 pounds purchased at $16.42 per pound. Direct manufacturing labor-hours actually used were 17,000, at the rate of $33.70 per hour. As a result, actual direct manufacturing labor costs were $572,900. Actual fixed costs were $1,200,000. There were no begin- ning or ending inventories. 1. Calculate the sales-volume variance and flexible-budget variance for operating ncome. ompute price and efficiency variances for direct materials and direct manufacturing labor