Samson Equipment Ltd. is a company that manufactures an abdominal exerciser called The Ab Rippler. The following information is for three of the company's activities in 2018:

Rate per Output unit/Batch

Static Actual

Activity Activity Level Cost Driver Budget Cost

Manufacturing Output unit Machine hours $0.90 $1.05

Inspecting Batch Inspection hours $15.00 12.50

Packaging Batch Packaging hours $5.50 $5.25

The output measure is the number of units produced.

Static Actual

Budget Amount

Number of units produced 40,000 44,400

Number of machine hours 16,000 14,800

Batch size in terms of units produced:

Inspection 5 4

Packaging 20 25

Required:

a. Calculate the flexible-budget variance for each activity in 2018.

b. Calculate the price and efficiency variances for each activity in 2018.