Standard Quantity	Standard Price	Standard Unit Cost
Direct materials	12 pounds	$11 per pound	$132
Direct manufacturing labor	3.8 hours	$30 per hour	$114

During 2017, actual number of units produced and sold was 5,200, at an average selling price of $730. Actual cost of direct materials used was $693,550, based on 71,500 pounds purchased at $9.70 per pound. Direct manufacturing labor-hours actually used were 18,000, at the rate of $32.40 per hour. As a result, actual direct manufacturing labor costs were $583,200. Actual fixed costs were $1,250,000. There were no beginning or ending inventories.

Expected production and sales	7,100	units
Expected selling price per unit	$700
Total fixed costs	$1,300,000

Calculate the sales-volume variance and flexible-budget variance for operating income.
2.	Compute price and efficiency variances for direct materials and direct manufacturing labor.