Income Statement Variance Analysis

	Actual Results	Revenue & Spending	Flexible Budget	Activity Variances	Planning Budget
Sales	10,370,000	170,000 F	10,200,000	600,000 F	9,600,000
Less: VC
DM	4,066,400	(13,600) F	4,080,000	240,000 U	3,840,000
DL	561,000	125,800 U	435,600	25,600 U	409,600
V-MOH	697,000	125,800 U	571,200	33,600 U	537,600
V-S&A	1,224,000	(136,000) F	1,360,000	80,000 U	1,280,000
CM	3,821,600	68,000 F	3,753,600	220,800 F	3,532,800
Less: FC
F-MOH	998,000	76,400 U	921,600	0	921,600
F-S&A	750,000	100,000 U	650,000	0	650,000
NOI	2,073,600	(108,400) U	2,182,000	220,800 F	1,961,200

3.

Material Price Variance	3,128,000(1.30-1.20)	$312,800	U
Quantity Variance	1.20(3,128,000-3,400,000)	($326,400)	F
Labor Rate Variance	34,000(16.50-16)	$17,000	U
Efficiency Variance	16(34,000-27,200)	$108,800	U
Variable OH Rate Variance	34,000(20.50-21)	($17,000)	F
Variable OH Efficiency Variance	21(34,000-27,200)	$142,800	U
Fixed MOH Budget Variance	998,000-921,000	76,400	U
Fixed MOH Volume Variance	36(25,600-27,200)	(57,600)	F

reconcile the spending variances in Part 1 with manufacturing cost variances in Part 3. For example, how is the amount of spending variance for direct labor in Part 1 explained by the amounts of the two direct labor variances in Part 3?