Jacobs company has the following Variable cost per unit (a.) direct material-$3.00; (b) direct labour-$4.00; (c) indirect materials-$1.50; (d) indirect labour -$2.00; (e) other variable factory overhead -$2.00 Fixed overhead costs are expected to be : ( a) utilities-$21,500; (b) supervisors salaries -$45,000; (c) depreciation-$65,000; (d) other fixed overhead -$ 14000 A. Prepare a flexible budget for the following levels of production: 20,000 units and 24,000 units ? What is the flexible budget formula?

B) Jacobs company manufacturers ceramic tiles. For January 2020, it budgeted to purchase and use 10,000 pounds of clay at $0.70 a pound. Actual purchases and usage for January 2020 were 11,000 pounds at $0.65 a pound. Jacobs company budgeted for 40,000 ceramic tiles. Actual output was 43,000 ceramic tiles. 1. Compute the flexible- budget variance for Direct material. 2. Compute the direct material price and efficiency variances. Comment on the results for requirements 1 and 2 and provide a possible explanation for them