Problem 1. Variance Analysis A master budget of a company in the year 19XX shows below: Sales (18,000 units @ $30) $540,000 Direct materials (9,000 lb@$10) 90,000 Direct labor (36,000 hr@s6) 216,000 Variable overhead cost (36,000 hr@ S2) 72,000 Fixed overhead cost 90,000 Gross income $72,000 At the end of the year, it shows that Sales (20,000 units @S30) $600,000 Direct materials (10,500 lb) 99,750 Direct labor (56.25 /hr.) 243,750 Variable overhead cost 76,050 Fixed overhead cost 87,000 Gross income $93.450 Flexible budget of overhead cost depends on actual direct hr used and there is no beginning and ending inventories. Find 1. Sales volume variance 2. Direct material price material 3. Direct material quantity variance 4. Total direct material variance 5. Direct labor price variance 6. Direct labor quantity variance 7. Total direct labor variance 8. Variable overhead price variance 9. Variable overhead quantity variance 10. Total variable overhead variance 11. Fixed overhead variance