The following pertains to Questions 27, 28, and 29 Variance Industries, Ltd. creates problems for accounting...

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The following pertains to Questions 27, 28, and 29 Variance Industries, Ltd. creates problems for accounting students. At the end of the first quarter of 2021, you have been asked to prepare a variance analysis of the company's operations for the quarter recently ended. You have gathered the data below from the company's accounts and the static budget prepared in December 2020. Variable and fixed manufacturing overhead are allocated based on direct- labour dollars. Actual results Static budget Units manufactured and sold 10,000 12,000 Sales revenue $320,000 $360,000 Variable costs Direct materials $50,000 $60,000 Direct labour 125,000 120,000 Variable manufacturing overhead 29,000 24,000 Total variable costs 204,000 204,000 Contribution margin 116,000 156,000 Fixed manufacturing overhead 73,000 72,000 Operating income (loss) 43,000 84,000 The following pertains to Questions 27, 28, and 29 Variance Industries, Ltd. creates problems for accounting students. At the end of the first quarter of 2021, you have been asked to prepare a variance analysis of the company's operations for the quarter recently ended. You have gathered the data below from the company's accounts and the static budget prepared in December 2020. Variable and fixed manufacturing overhead are allocated based on direct- labour dollars. Actual results Static budget Units manufactured and sold 10,000 12,000 Sales revenue $320,000 $360,000 Variable costs Direct materials $50,000 $60,000 Direct labour 125,000 120,000 Variable manufacturing overhead 29,000 24,000 Total variable costs 204,000 204,000 Contribution margin 116,000 156,000 Fixed manufacturing overhead 73,000 72,000 Operating income (loss) 43,000 84,000