RJM Enterprises is a manufacturer of consumer electronics products. The industry is very competitive, and RJM has seen its profits fall in recent years, including an operating loss of $17,000 last year. RJM was able to turn that around this year by aggressively cutting costs. The summarized financial results for RJM are shown below: Current Year Prior Year Gross sales: $ 938,000 $ 1,306,160 Less variable costs Direct materials 568,800 760,960 Direct labor 312,000 487,200 Total contribution margin $ 57,200 $ 58,000 Fixed costs 33,509 75,000 Operating income $ 23,691 $ (17,000) Jim Green, the management accountant at RJM, is analyzing the company's performance for this year in order to explain to management the specific aspects that drove the company to success. Some of the information Jim obtained follows: Current Year Prior Year Sales units 40,000 46,400 Price $ 23.45 $ 28.15 Direct materials cost per unit of material $ 7.90 $ 8.20 Direct materials required per unit 1.80 2.00 Direct labor required per unit 0.60 0.75 Wage rate ($/hour) $ 13.00 $ 14.00 Assume that RJM, for efficiency and to reduce cost, maintains little or no direct materials or workinprocess inventory. Assume that RJM, for efciency and to reduce cost. maintains little or no direct materials or work-in-process inventory. Required: 1. Determine the selling price variance for the current year based on sales dollars. Determine the sales volume variance based on contribution margin. 2. Determine the following variable cost variances: a. The usage and price variances for direct materials. b. The efficiency and rate variances for direct labor. Selling price variance in sales dollars Sales volume variance in contribtion Materials usage variance Materials price variance Labor usage variance Labor rate variance