Next, calculate the 8 variances ...after that, proceed to the questions.

In your answers, be sure to use proper commas. Do not use dollar signs or decimal places. If the variance is favorable, indicate so by using (F). If unfavorable, indicate so by using (U). For example, a favorable variance of 10,000 would look like this: 10,000 (F). Be sure to put a space between the number and the descriptor in parentheses.

Per Unit Standards:

DM: 15.0 lbs @ 12.00 = 180.00 DL: 10.0 hrs @ 19.00 = 190.00 VOH: 10.0 hrs @ 7.00 = 70.00 FOH: 10.0 hrs @ 5.00 = 50.00 490.00

Flexible Budget (based on 80% of Productive Capacity):

Production Unit 3,500 4,000 4,500 Percent of Capacity 70% 80% 90% DM Quantity 15.0 52,500 60,000 67,500 DM $$ 180.00 630,000 720,000 810,000 DL Hours 10.0 35,000 40,000 45,000 DL $$ 190.00 665,000 760,000 855,000 Indirect Material 2.50 87,500 100,000 112,500 Indirect Labor 2.70 94,500 108,000 121,500 Utilities 1.80 63,000 72,000 81,000 Total VOH $$ 7.00 245,000 280,000 315,000 Rent - Factory 1.00 40,000 40,000 40,000 Depreciation - Factory 1.80 72,000 72,000 72,000 Factory Insurance 0.60 24,000 24,000 24,000 Supervisor Salaries 1.60 64,000 64,000 64,000 Total FOH $$ 5.00 200,000 200,000 200,000

Actual Results (based on 90% of Productive Capacity):

DM: 65,000 lbs @ 13.00 = 845,000 DL: 44,500 hrs @ 18.50 = 823,250 Indirect Material = 114,360 Indirect Labor = 129,400 Utilities = 76,800 Rent - Factory = 48,150 Deprec - Factory = 74,300 Factory Insurance = 25,900 Supervisor Salaries = 64,650 Total Factory OH $$ = 533,560