Once you have completed the assignment below, you must submit your answers using the answer sheet provided in Canvas; not all answers will be turned in and not all answers will be graded. Once submitted, your answers cannot be changed, but where appropriate, partial credit will be given. For future reference, you should keep a copy of your answers (outside of Canvas) as they will not be available to view given the nature of the grading process. Zap-IT produces portable solar panel units used in industrial applications and had the following available: Sales Less operating expenses Budget Actual Budget Variance $11,858,000 $12,100,000 Advertising 22,000 18,000 Less production expenses Direct Materials 4,800,000 5,064,660 Direct Labor 270,000 212,500 Variable Overhead 15,200 13,900 Rent on Equipment 3,900 6,200 Income from operations 6,746,900 6,784,740 Required: A. Complete the performance report; speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances. B. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 6,000 units were produced: Standards Direct materials Each unit should have 100 Direct labor pounds of direct materials purchased at $8 per pound. Each unit should be produced in 3 hours at a direct labor cost of $15 per hour. Actual Results Actual production used 610,200 pounds of direct materials at an average cost of $8.30 per pound. Actual production required 17,000 direct labor hours at an average cost of $12.50 per hour. Calculate the price and quantity variance for direct materials and direct labor; as needed, round final calculations (i.e. each variance) to the nearest whole dollar. C. Given your results to part B above, speculate on a possible cause for each price and quantity variance and suggest a follow-up action for each variance. Question 1 What is the budget variance for sales? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. Question 2 1 pts 1 pts What is the budget variance for variable overhead? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. Question 3 1 pts What is the price variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. Question 4 1 pts What is the quantity variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. Question 5 1 pts What is the total budget variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. Question 6 1 pts What is the price variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. Question 7 1 pts What is the quantity variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. Question 8 1 pts What is the total variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. > Question 9 1 pts What are two possible causes of the direct materials quantity variance? What two follow- up actions would you suggest to help address that variance? Edit 12pt View Insert Format Tools Table Paragraph B I U A