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 2017: 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.) Output units Revenues Direct materials Direct manufacturing labor Fixed costs Total costs Operating income Actual Results 5,200 $ 3,640,000 $ 693,550 583,200 1,230,000 $ 2,506,750 $ 1,133,250 Flexible-Budget Variance 300 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor Flexible Budget 017: E Data table Expected production and sales Expected selling price per unit Total fixed costs $ $ 6,400 units 670 1,250,000 riance for ope the static buc ible get 4800 84000 Data table Direct materials Direct manufacturing labor Standard Quantity 12 pounds 3.8 hours Standard Price $11 per pound $30 per hour Standard Unit Cost $132 $114 During 2017, actual number of units produced and sold was 5,200, at an average selling price of $700. Actual cost of direct materials used was $693,550, based on 71,500 pounds purchased at $9.70 per pound. Direct manufacturing labor-hours actually used were 18,000, at the rate of $32.40 per hour. As a result, actual direct manufacturing labor costs were $583,200. Actual fixed costs were $1,230,000. There were no beginning or ending inventories.