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*Show all calculations. 13-28 Flexible budget, direct materials, and direct manufacturing labor variances. Palermo Statuary manufactures bust statues of famous historical figures. All statues are
*Show all calculations.
13-28 Flexible budget, direct materials, and direct manufacturing labor variances. Palermo Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2013: Expected production and sales 6,300 units Total fixed costs $1,350,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: Standard Quantity Standard Price Standard Unit Cost Direct materials 14 pounds $12 per pound $168 Direct manufacturing labor 3.1 hours $40 per hour S124 During 2013, actual number of units produced and sold was 4,800. Actual cost of direct materials used was $813,750, based on 62,500 pounds purchased at $13.02 per pound. Direct manufacturing labor-hours actually used were 17,500, at the rate of $33.48 per hour. As a result, actual direct manufacturing labor costs were $585,900. Actual fixed costs were $1,160,000. There were no beginning or ending inventories. Required 1. Calculate the sales-volume variance and fexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing laborStep by Step Solution
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