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The company produces products in the same size. Each unit needs the same amount of resources. The following information is from the static budget for

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The company produces products in the same size. Each unit needs the same amount of resources. The following information is from the static budget for 2020: Expected production and sales 6,100 units Expected selling price per unit 700 BD Total fixed cost 1,350,000 BD 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 16 pounds 14 BD per pound 224 BD Direct manufacturing labor 3.8 hours 30 BD per hour 114 BD During 2020, the actual number of units produced and sold was 5,100, at an average selling price of 730 BD. The actual cost of direct materials used was 1,149,400 BD, based on 70,000 pounds purchased at 16.42 BD per pound. Actual direct manufacturing labor-hours were 17,000, at the rate of 33.70 BD per hour. As a result, actual direct manufacturing labor costs were 572,900 BD. Actual fixed costs were 1,200,000 BD. There were no beginning or ending inventories. Required: 1. 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

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