Milan Statuary 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 2020 Data table Expected production and sales 6,100 units Expected selling price per unit $770 Total fixed costs $1,300,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor Data table Standard Quantity Standard Price Standard Unit Cost Direct materials 12 pounds $11 per pound $132 Direct manufacturing labor 3 8 hours $30 per hour $114 During 2020, actual number of units produced and sold was 5,200, at an average selling price of $780 Actual cost of direct materials used was $693,550 (71,500 pounds at $9 70 per pound) Actual direct manufacturing labor costs were $583,200 (18,000 actual direct manufacturing labor hours at $32 40 per hour) Actual fixed costs were $1,150,000 There were no beginning or ending inventories pop up content ends PrintDone Requirements 1 Calculate the sales volume variance and flexible budget variance for operating income 2 Compute price and efficiency variances for direct materials and direct manufacturing labor requirement 1 Calculate the sales volume variance and flexible budget variance for operating income Begin with the actual results, then complete the flexible budget columns and the static budget columns Label each variance as favorable (F) or unfavorable (U) (For variances with a $0 balance, make sure to enter 0 in the appropriate field If the variance is zero, do not select a label ) Actual Results Output units Revenues Direct materials Direct manufacturing labor Fixed costs Total costs Operating income Flexible Budget Flexible Variance Budget Sales Volume Static Variance Budget Part 2 Requirement 2 Compute price and efficiency variances for direct materials and direct manufacturing labor Compute the price and efficiency variances for direct materials Label each variance as favorable (F) or unfavorable (U) Price variance Efficiency variance Part 3 Compute the price and efficiency variances for direct manufacturing labor Label each variance as favorable (F) or unfavorable (U) Price variance Efficiency variance

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Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following

Milan

Statuary 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

2020:

Data table

Expected production and sales	6,100 units
Expected selling price per unit	$770
Total fixed costs	$1,300,000

Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor:

Data table

	Standard Quantity	Standard Price	Standard Unit Cost
Direct materials	12 pounds	$11 per pound	$132
Direct manufacturing labor	3.8 hours	$30 per hour	$114

During 2020, actual number of units produced and sold was 5,200, at an average selling price of $780. Actual cost of direct materials used was $693,550 (71,500 pounds at $9.70 per pound). Actual direct manufacturing labor costs were $583,200 (18,000 actual direct manufacturing labor-hours at $32.40 per hour). Actual fixed costs were $1,150,000. There were no beginning or ending inventories. pop-up content ends PrintDone

Requirements

1.	Calculate the sales-volume variance and flexible-budget variance for operating income.
2.	Compute price and efficiency variances for direct materials and direct manufacturing labor.

requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income.

Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.)