Test, Inc. is in the business of producing study materials for exams. Test has some information related to its operations provided. Calculate the required variances for this problem using the given information. Test produced 700,000 test preparation documents. At the end of the period, Cilantro found that its costs were $0.92 in materials per unit and $11.50 per hour in labor for the tests. Test Inc. expected costs of $0.93 in materials per unit and $10 per hour labor for sauces. Test expected to use .05 Direct Labor hours per test, but found that they actually used .03 Direct Labor hours per test. REQUIRED 1) Calculate the Price, Quantity, and Total Variance for Direct Materials. Interpret the results from this analysis to receive credit. 2) Calculate the Price, Quantity, and Total Variance for Direct Labor. Interpret the results from this analysis to receive credit. September October November December 2 Sales Budget 3 4 Cash Sales 5 Credit Sales 6 Total Budgeted Sales 7 8 Total Budgeted Collections 9 10 11 Inventory Budget 12 13 Cost of Goods Sold 14 Target Ending Inventory 15 Inventory Needed 16 Beginning Inventory 17 Total Budgeted Cash Outflow 18 19 20 Other Expense Budget 21 22 SG&A Expense 23 Total Budgeted Cash Outflow 24 Budget Month November October December D Budget Month November December October Budget Month November October December 25 26 Interest Payment Budget 27 28 Interest Expense 29 Total Budgeted Cash Outflow 30 31 32 Taxes Budget 33 34 Taxes Expense 35 Total Budgeted Cash Outflow 36 37 38 Cash Budget 39 10 Cash Inflows: 1 From Customers 12 13 Cash Outflows: 14 For Inventory 15 For SG&A Expenses 16 For Interest Expenses 7 For Taxes Budget Month November October December Beginning Cash Change in Cash Ending Cash Budget Month November December Pro Forma Income Statement October Sales Revenue COGS Gross Income Operating Expenses Operating Income Interest Expense EBT Taxes Expense Net Income