Malden Outdoor Products Inc. produces several products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of this year, uses a standard cost system. The standard costs for one large planter are: Direct material (3 lbs. @ $8.00) $ 24.00 Direct labor (2 hrs. @ $15.00) 30.00 Variable overhead 24.00 Fixed overhead 6.00 Standard cost per unit $84.00 The $6.00 fixed overhead rate is based on total budgeted fixed overhead costs of $18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs: Direct materials (9,000 lbs.) $ 81,270 Direct labor (6,000 hrs.) 78,000 Variable overhead 76,000 Fixed overhead 16,500 Total production costs incurred $251,770 Calculate 1-4 and use calculations to answer question 5:

1-What is the direct materials price variance

2-What is the direct material quantity vaiance

3- what is the direct labor rate variance

4- what is the direct labor efficiency variance

5- What do the flexible budget variances in the chart below and the direct cost variances in Q1 through Q4 above tell the manager about Malden outdoor products operations this year?

Answer Flexible Budget Actual Variance Variable Amount per Total Fixed unit Flexible Cost Standard Budget Actual Variance Fav/Unfav Sales /Production(Units Variable costs Direct Material Direct Labour Variable OH Total Variable Cost 3,000 3,100 3,100 24.00 30.00 24.00 78.00 72,000 90,000 72,000 234,000 74,400 93,000 74,400 241,800 81,270 78,000 76,000 235,270 (6,870) Unfavourable 15,000 Favourable (1,600) Unfavourable 6,530 Favourable Fixed overhea Total Fixed Overhead 18,000 18,000 18,000 18,000 18,000 18,000 16,500 16,500 1,500 Favourable 1,500 Favourablee Total production Cost 252,000 259,800 251,770 8,030 Favourable