labor variances. Emerald Statuary 7-34 Flexible budget, direct materials, and direct manufacturing manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: 7,000 units Expected production and sales Expected selling price per unit Total fixed costs 680 S $1,400,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manu- facturing labor: Standard Quantity 10 pounds 3.7 hours Standard Price $ 8 per pound $50 per hour Standard Unit Cost S 80 $185 Direct materials Direct manufacturing labor During 2017, actual number of units produced and sold was 4,800, at an average selling price of $720. Ac- tual cost of direct materials used was $392,700, based on 66,000 pounds purchased at $5.95 per pound. Direct manufacturing labor-hours actually used were 18,300, at the rate of $48 per hour. As a result, actual direct manufacturing labor costs were $878,400. Actual fixed costs were $1,170,000. There were no beginning or ending inventories