Palermo 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: (Click the icon to view the static budget data.) Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: (Click the icon to view the data.) Read the requirements. 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.) Actual Flexible-Budget Variance Results 5,800 Flexible Budget 5800 Output units Revenues $ 4,640,000 232,000 4408000 Direct materials $ 633,600 126,000|| U 507,600 Direct manufacturing labor 651,700 14400 637300 Fixed costs 1,240,000 Total costs $ 2,525,300 $ 2,114,700 Operating income Data Table Expected production and sales 6,500 units Expected selling price per unit $ 760 Total fixed costs $ 1,450,000 Standard Quantity Standard Price Standard Unit Cost Direct materials 12 pounds $9 per pound $108 Direct manufacturing labor 3.8 hours $30 per hour $114 During 2017, actual number of units produced and sold was 5,800, at an average selling price of $800. Actual cost of direct materials used was $633,600, based on 72,000 pounds purchased at $8.80 per pound. Direct manufacturing labor-hours actually used were 19,000, at the rate of $34.30 per hour. As a result, actual direct manufacturing labor costs were $651,700. Actual fixed costs were $1,240,000. There were no beginning or ending inventories. Requirements 1. Calculate the sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor. Print Done