PROBLEM: Variances Fletcher Company collected the following data regarding production of one of its products. Direct materials budget/standard (6 lbs @ $2/lb) Actual direct materials used Actual finished units produced Actual cost of direct materials used Direct labor budget/standard (5 hours $12/hour) Actual direct labor used Actual cot of direct labor used Budgeted finished units Actual Selling Price Budgeted Selling Price $12 per finished unit 243,000 lbs 40,000 units $483,570 total DM cost $6 per finished unit 22,000 hours $125,000 total DL cost 45,000 units 100 per unit $110 per unit Budgeting & Variances Cost Variance Analysis Budget Variance Flex Budget Variance Sales Volume Variance Selling Price Variance Direct Materials Variance Virect Labor Variance M Price Variance (Actual Price Budgeted Price) x Actual Quantity DL Price Variance (Actual Price- Budgeted Price) x Actual Quantity Quantity Variance (efficiencyl DL Quantity Variance lefficiencyl (Actual Quantity- Budgeted Quantity Actual Output) x Budgeted Price (Actual Quantity Budgeted Quantity Actual Output) x Budgeted Price