Pacific Company provides the following information about its budgeted and actual results for June 201 4 . Although the expected June volume was 25,000 units produced and sold, the company actually produced and sold 27,000 units as detailed here: Budgeted 25,000 units Actual 27,000 units Selling price $5 $5.23 Variable costs Direct materials $1.24 $1.12 Direct labor $1.50 $1.40 Factory supplies .25 .37 Utilities .50 .60 Selling costs .40 .34 Fixed costs Depreciation machinery* $3,750 $3,710 Depreciation building* 2,500 2,500 General liability insurance 1,200 1,250 Property taxes 500 485 Other administrative expense 750 900 * Indicates factory overhead item; $ 0.75 per unit or $ 3 per direct labor hour for variable overhead, and $ 0.25 per unit or $ 1 per direct labor hour for fixed overhead. Standard costs based on expected output of 25,000 units Per unit output Quantity to be used Total Cost Direct materials, 4 oz. @ $0.31/oz $1.24 per unit 100,000 oz $31,000 Direct labor, .25 hours @ $6 per hour $1.50 per unit 6,250 hours 37,500 Overhead $1.00 per unit 25,000 Actual costs incurred to produce 27,000 units Per unit output Quantity to be used Total Cost Direct materials, 4 oz. @ $0.28/oz $1.12 per unit 108,000 oz $30,240 Direct labor, .20 hours @ $7 per hour $1.40 per unit 5,400 hours 37,800 Overhead $1.20 per unit 32,400 Standard costs based on expected output of 27,000 uni ts Per unit output Quantity to be used Total Cost Direct materials, 4 oz. @ $0.31/oz $1.24 per unit 108,000 oz $33,480 Direct labor, .25 hours @ $6 per hour $1.50 per unit 6, 750 hours 40,500 Overhead 26,50 1. Prepare June flexible budgets showing expected sales, costs, and net income assuming 20,000, 25,000, and 30,000 units of output produced and sold. 2. Prepare a flexible budget performance report that compares actual results with the amounts budgeted if the actual volume had been expected. 3. Apply variance analysis for direct materials and direct labor. 4. Compute the total overhead variance, and the controllable and volume variances. 5. Compute spending and efficiency variances for overhead. 6. Prepare journal entries to record standard costs, and price and quantity variances, for direct materials, direc t labor, and factory overhead