Sammy Corporation makes a product with the following standard costs:

	Standard quantity or hours	Standard price or rate
Direct Materials	7 pounds	$5.00 per pound
Direct Labor	0.8 hours	$17.00 per hour
Variable overhead	0.8 hours	$7 per hour

The company reported the following results concerning this product in July.

Originally budgeted output	4,400	units
Actual output	4,500	units
Materials purchased and used in production	34,150	pounds
Actual direct labor hours	3,610	hours
Actual price of raw materials	$5.10	per pound
Actual direct labor rate	$17.10	per hour
Actual variable overhead rate	$6.70	per hour

The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.

Required:

If units sell for $100 each (budgeted and actual selling price), what is static budget net income?

If units sell for $100 each (budgeted and actual selling price), what is the flexible budget net income?

If units sell for $100 each (budgeted and actual selling price), what is the actual net income?

What is the sales volume variance in dollars? (Include an F or U for favorable or unfavorable.)

What is the flexible budget variance? (Include an F or U for favorable or unfavorable.)

Compute the materials price variance. (Include an F or U for favorable or unfavorable.)

Compute the materials quantity variance. (Include an F or U for favorable or unfavorable.)

Compute the labor rate variance. (Include an F or U for favorable or unfavorable.)

Compute the labor efficiency variance. (Include an F or U for favorable or unfavorable.)

Prepare a journal entry to record the purchase of materials using standard costing.

Prepare a journal entry to record the use of direct materials in production using standard costing.

Prepare a journal entry to record direct labor used in production using standard costing.