Question 2: Islanders Inc. make hockey equipment. One of the main products they sell are hockey sticks. When Islanders Inc. were preparing their budget for 2018, they had estimated these numbers in regard to the hockey sticks they make and sell:

Units Sold: Price: Direct Material per hockey stick: Total Cost of Direct Materials: Direct Manufacturing Labor Hours per stick: Labor Wage Rate: Variable Manufacturing per DLMH: Fixed Manufacturing Costs :

40,000 sticks $18.00 per stick .9 pounds $158,400 .2 hours $11 per hour $4.20 $26,400

On December 31st, Islanders Inc. had these numbers regarding the manufacture and sale of their hockey sticks.

Units Sold: Average Price per Unit: Average Direct Materials per hockey stick: Average cost per ounce of DM: Total Direct Labor Manufacturing Hours: Total Direct Labor Manufacturing Costs: Variable Manufacturing Costs (based off DLMH): Fixed Manufacturing Costs :

39,600 sticks $ 18.25 per stick .85 pounds 4.50 per pound 7,524 hours $84,645 $31,977 $26,700

Using this information, please do the following:

1. Calculate the Sales Volume Variance for Revenue, Variable Manufacturing Overhead, and Fixed

   Manufacturing Overhead.

2. Calculate the Spending, Efficiency and Flexible Budget variance for Direct Materials

3. Calculate the Spending, Efficiency and Flexible Budget variance for Direct Labor

a. Sales Volume VariancesRevenue:_____________________________________________

Variable Manufacturing Overhead:_________________________

Fixed Manufacturing Overhead:____________________________

b. Direct Materials Efficiency Variance: ____________________________________________

Spending Variance: ____________________________________________

Flexible Budget Variance: ____________________________________________

c. Direct Labor Efficiency Variance: ____________________________________________

Spending Variance: ____________________________________________

Flexible Budget Variance: ____________________________________________