Please compute the Variances possible with the given information.

Surrey Bikes, Inc. manufactures double bench bikes for resorts and other vacation properties. Management now wants the accountants to complete an analysis to compare the budgeted costs to standard costs for 2021. During the year 2021, the company completed 680 bikes. Let's discuss changes from budget and standard that occurred during 2021. Overall, the company was able to increase several efficiencies. However, the company also experienced some increased costs. Use this information to complete the CH24 Budet Variances tab; the green section. Electrical Parts Direct Materials The purchase price, net of discounts increase by $2.50 per set. There was also an increase in freight of by $0.25 per set. Wheel Sets Direct Materials: The company was able to secure the same wheel sets from a new supplier at a cost of $37/set. However, freight cost increased by $0.50 per wheel set. Metal Parts Direct Materials: The company was also able to reduce the amount of material used for each bike by 3 pounds. The acual cost of the metal parts was $0.52 per pound. Canvas Fabric Direct Materials: The company was also able to reduce the amount of material used for each bike by one-half a yard. The acual cost of the canvas fabric was $4.95 per yard. Direct labor: Employees were tasked with increasing equipment assembly and decreasing labor hours. They were successful in 2021 and brought hours down by 5/hours/unit! The company provided a $1/hour raise! This also lead to an increase of $0.25/hour in payroll taxes. Manufacturing overhead: There were no changes in manufacturing overhead, no variance needs to be computed Using this information, computer the budget variances incurred during 2021. Variance Formulas Actual Quantity Standard Quantity X Standard Price Total Materials Variance X Actual Price Actual Quantity X Actual Price Actual Quantity X Standard Price Materials Price Variance Actual Quantity X Standard Price Standard Quantity X Standard Price Materials Quantity Variance Actual Hours Standard Hours Total Labor Variance X Actual Rate X Standard Rate Actual Hours X Actual Rate Actual Hours X Standard Rate Labor Price Variance Actual Hours X Standard Rate Standard Hours X Standard Rate Labor Quantity Variance Actual Overhead Overhead Applied Total Overhead Variance At the end of 2020, there were no bikes left in inventory to sell in 2021. Management would like to start 2022 with inventory on hand. They would like to Surrey Bikes, Inc. Production Budget For the Year Ended December 31, 2021 600 Expected sales units Add: Desired ending finished goods units (ending balance 2021) Total required units Less: Beginning finished goods units (ending balance 2020) Required production units 600 25 625 625 Sales in 2020 were 500 units. They are bringing on a new customer and management is expecting a 20% increase in 2021. They will increase the Surrey Bikes, Inc. Sales Budget For the Year Ended December 31, 2021 Expected sales units Unit selling price 3,250 Total sales $1,950,000 600 $ Management expects that it will take 50 hours of direct labor to manufacture each bike. Direct labor is billed at $20/hour. Surrey Bikes, Inc. Direct Labor Budget For the Year Ended December 31, 2021 Units to be produced Direct labor time (hours) per unit Total required direct labor hours Direct labor cost per hour Total direct labor cost 600.00 45.00 27,000.00 21.25 573,750.00 625 200 125,000 5,000 130,000 1,000 129,000 0.50 64,500 $ Required production units Metal parts direct materials pounds per unit produced: Total pounds needed for production Add: Desired ending direct materials in pounds (ending balance 2021) Total materials required Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases Cost per pound Total cost of metal parts direct materials purchases Required production units Canvas direct material yards per unit produced: Total yards needed for production Add: Desired ending direct materials in yards (ending balance 2021) Total materials required Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases Cost per yard Total cost of canvas direct materials purchases 625 3 1,875 200 2,075 20 2,055 10.00 20,550 $ $ Total cost of ALL direct materials purchases $ 183,925 Using the information provided on the BLUE TABS, calculate the following variances. Include a description of the variables for each computation. In order to receive credit --> show your calculations!! Hint: you will need to calculate the material variances for each component of direct materials. Sum up the variances for each material variance formula. Total Materials Variance Material Price Variance Material Quantity Variance Total Labor Variance Labor Price Variance Surrey Bikes, Inc. manufactures double bench bikes for resorts and other vacation properties. Management now wants the accountants to complete an analysis to compare the budgeted costs to standard costs for 2021. During the year 2021, the company completed 680 bikes. Let's discuss changes from budget and standard that occurred during 2021. Overall, the company was able to increase several efficiencies. However, the company also experienced some increased costs. Use this information to complete the CH24 Budet Variances tab; the green section. Electrical Parts Direct Materials The purchase price, net of discounts increase by $2.50 per set. There was also an increase in freight of by $0.25 per set. Wheel Sets Direct Materials: The company was able to secure the same wheel sets from a new supplier at a cost of $37/set. However, freight cost increased by $0.50 per wheel set. Metal Parts Direct Materials: The company was also able to reduce the amount of material used for each bike by 3 pounds. The acual cost of the metal parts was $0.52 per pound. Canvas Fabric Direct Materials: The company was also able to reduce the amount of material used for each bike by one-half a yard. The acual cost of the canvas fabric was $4.95 per yard. Direct labor: Employees were tasked with increasing equipment assembly and decreasing labor hours. They were successful in 2021 and brought hours down by 5/hours/unit! The company provided a $1/hour raise! This also lead to an increase of $0.25/hour in payroll taxes. Manufacturing overhead: There were no changes in manufacturing overhead, no variance needs to be computed Using this information, computer the budget variances incurred during 2021. Variance Formulas Actual Quantity Standard Quantity X Standard Price Total Materials Variance X Actual Price Actual Quantity X Actual Price Actual Quantity X Standard Price Materials Price Variance Actual Quantity X Standard Price Standard Quantity X Standard Price Materials Quantity Variance Actual Hours Standard Hours Total Labor Variance X Actual Rate X Standard Rate Actual Hours X Actual Rate Actual Hours X Standard Rate Labor Price Variance Actual Hours X Standard Rate Standard Hours X Standard Rate Labor Quantity Variance Actual Overhead Overhead Applied Total Overhead Variance At the end of 2020, there were no bikes left in inventory to sell in 2021. Management would like to start 2022 with inventory on hand. They would like to Surrey Bikes, Inc. Production Budget For the Year Ended December 31, 2021 600 Expected sales units Add: Desired ending finished goods units (ending balance 2021) Total required units Less: Beginning finished goods units (ending balance 2020) Required production units 600 25 625 625 Sales in 2020 were 500 units. They are bringing on a new customer and management is expecting a 20% increase in 2021. They will increase the Surrey Bikes, Inc. Sales Budget For the Year Ended December 31, 2021 Expected sales units Unit selling price 3,250 Total sales $1,950,000 600 $ Management expects that it will take 50 hours of direct labor to manufacture each bike. Direct labor is billed at $20/hour. Surrey Bikes, Inc. Direct Labor Budget For the Year Ended December 31, 2021 Units to be produced Direct labor time (hours) per unit Total required direct labor hours Direct labor cost per hour Total direct labor cost 600.00 45.00 27,000.00 21.25 573,750.00 625 200 125,000 5,000 130,000 1,000 129,000 0.50 64,500 $ Required production units Metal parts direct materials pounds per unit produced: Total pounds needed for production Add: Desired ending direct materials in pounds (ending balance 2021) Total materials required Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases Cost per pound Total cost of metal parts direct materials purchases Required production units Canvas direct material yards per unit produced: Total yards needed for production Add: Desired ending direct materials in yards (ending balance 2021) Total materials required Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases Cost per yard Total cost of canvas direct materials purchases 625 3 1,875 200 2,075 20 2,055 10.00 20,550 $ $ Total cost of ALL direct materials purchases $ 183,925 Using the information provided on the BLUE TABS, calculate the following variances. Include a description of the variables for each computation. In order to receive credit --> show your calculations!! Hint: you will need to calculate the material variances for each component of direct materials. Sum up the variances for each material variance formula. Total Materials Variance Material Price Variance Material Quantity Variance Total Labor Variance Labor Price Variance