Question 2 Manlow Company makes a pasta sauce for the restaurant industry. The standard cost of direct materials and direct labor for m unit of sauce is as follows: _ - Manufacturing cost Price/Rate m Direct materials _ $0.90er litre 55.40 hour During the month the following transactions occurred in the manufacturing of 10,000 units of sauce: 0 A total of 58,000 litres of direct materials were used to produce 10,000 units ( 5.8 litres per unit]. The actual cost per litre was $1.00. a A total of 4,900 direct labour hours were worked at an hourly rate of $11.50 per hour for a total labour cost of $56,350. Required 3) Calculate the flexible budget variance, price variance and quantity variance for direct materials. b] Calculate the flexible budget variance, rate variance and efciency variance for direct laboun Direct materials variance AQ X AP Direct labor variance AQ X AP Question 1 Canada Inc. expected to sell 9,000 units at a selling price of $15 per unit, variable costs of $8 per unit and $45,000 in total fixed costs. These expected results are shown in the table 3.1 below under the Master (Static) Budget column. Actual sales were 10,000 units at a selling price of $15 per unit. Actual variable costs were $7.25 per unit and total actual fixed costs were $50,000. The CEO has asked to you for assistance in identifying all possible variances. Required a) Complete the following table where the ? ( question marks) are indicated. MASTER ACTUAL FLEXIBLE VOLUME FLEXIBLE (STATIC) RESULTS BUDGET VARIANCE BUDGET BUDGET VARIANCE Units 9,000 Sales $135,000 ? ? ? ? Variable costs 72,000 ? ? P ? Contribution 63,000 ? P P ? margin Fixed costs 45,000 ? P ? Net profit (loss) $18,000 ? ? ? b) What does the volume variance represent? (Discuss very briefly) (c) What does the flexible budget variance represent? (Discuss very briefly)