MNO Company budgeted the following amounts:

Selling Price: $40 per unit

Variable costs of production:
	Direct materials	10 pounds @ $1.00 per pound
	Direct labor	1.00 hours @ $20.00 per hour
	Variable overhead	0.75 hours @ $4.00 per hour

Fixed overhead:
	Materials handling	$10,000
	Depreciation	$1,500

Prepare a flexible budget for 2,000 units, 2,200 units and 2,500 units.

Assume the static budget was prepared for 2,000 units but 2,200 units were actually produced and sold. For the 2,000 units produced and sold the actual raw materials used was $22,000, the actual direct labor used was $38,000 the actual variable overhead was $6,500, the actual fixed costs for materials handling was $9,000 and the actual fixed costs for depreciation was $2,000. Using a three column format as shown in the chapter compute the:

static budget variance

sales volume variance

total flexible budget variance

raw materials flexible budget variance

direct labor flexible budget variance

variable overhead flexible budget variance

fixed overhead flexible budget variances