Sunshine Dresses is preparing a flexible budget for the month of October, using a contribution margin format. Staff have completed the budget if 800 units of product are produced and sold. You must complete the budget if 1,000 units of product are produced and sold.

You are given the following information for the flexible budget if 800 units of product are produced and sold:

Sales = $64,000

Variable Costs = 12,000

Fixed Costs, regardless of sales level, = $50,000

You are asked to prepare the flexible budget if 1,000 units of product are produced and sold. What is the contribution margin at that level of sales?

2.Sunshine Dresses planned to use 2,000 yards of cotton costing $7 per yard to make 1,000 dresses. In actually making 1,000 dresses, the company used 1,800 yards that cost $8 per yard. Calculate the direct materials quantity variance. Specify dollars and cents. Be sure to specify if a negative or positive number.

3.Using the following information below, calculate the direct labor rate variance:

Actual costs and quantities:

Direct labor cost incurred $1,805

Direct labor hours used 95 hours

Units produced 1,000 units

Standard costs and quantities:

Direct labor rate per hour $ 20.00

Hours to produce one unit 0.1 hours

Calculate the direct labor rate variance. Report in dollars and cents. Be sure to specify if a negative or a positive number.