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 2020?: Expected production and sales 6,700 units. Expected selling price per unit $ 650 Total fixed costs $ 1,250,000. 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

8 pounds

$7 per pound

$56

Direct manufacturing labor

3.3 hours

$50 per hour

$165

During 2020?, actual number of units produced and sold was 5,800?, at an average selling price of $700. Actual cost of direct materials used was $332,800 ?(64,000 pounds at $5.20 per?pound). Actual direct manufacturing labor costs were $948,850 ?(17,500 actual direct manufacturing?labor-hours at $54.22 per?hour). Actual fixed costs were $1,160,000. There were no beginning or ending inventories.

Requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Sales-Volume Static Results Variance Budget Variance Budget Output units Revenues Direct materials Direct manufacturing labor Fixed costs Total costs Operating income Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labor. Compute the price and efficiency variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Price variance Efficiency variance Compute the price and efficiency variances for direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price variance Efficiency variance Show transcribed image text