Storage Products manufactures two models of DVD storage cases: Regular and Deluxe. Presented is standard [budgeted] cost information for each model:

Cost Components		Regular		Deluxe
Direct Materials
Lumber	2 Board feet * $3 =	$6.00	3 board feet * 3 =	$9.00
Assembly Kit	=	2.00	=	2.00
Direct Labor	1 hour * $4 =	4.00	1.25 hours * $4 =	5.00
Variable Overhead	1 labor hr. * $2 =	2.00	1.25 labor hrs * $2 =	2.50
Total		14.00		18.50

Budgeted fixed manufacturing overhead is $13,000 per month. During July, the company produced 5,000 regular and 2,000 deluxe storage cases while incurring the following manufacturing costs:

Direct Materials (Lumber and Assembly kit)	$70,000
Direct Labor	31,000
Variable overhead	11,500
Fixed Overhead	15,500
Total	$128,000

What is the flexible budget direct materials variance?

Select one:

a.$30,000 [F]

b.$22,000 [U]

c.$5,000 [F]

d.$8,000 [U]

What is the flexible budget variable overhead variance?

Select one:

a.$1,500 [U]

b.$6,500 [F]

c.$3,500 [F]

d.$5,400 [U]