The Victoria Falls Software company (VFS) is planning for the next year. After the first ten years of operation the company has solidified standards for most manufacturing tasks. The business is heavily automated, so overhead has been applied using machine hours as the cost driver for both variable and fixed overhead. Information on planned production and sales appears below: Budgeted Sale Price $800 per unit Estimated Market Size 500,000 units Budgeted number of computers to be produced and sold 50,000 Standard Cost per unit: Direct Material 4 lbs. per unit $5 per lb. $ 20.00 per unit Direct Labor 0.05 hrs. per unit $30 per hr. $ 1.50 per unit Variable Overhead 0.25 MH per unit $125 per hr. $ 31.25 per unit Fixed Overhead 0.25 MH per unit $250 per hr. $ 62.50 per unit* $ 115.25 *Based on prod. of 50,000 units Budgeted Variable Selling Expense $80.00 per unit Budgeted Fixed Selling & Administration $10,000,000 Instead of producing and selling 50,000 units of software, VFS produced and sold 52,000 units. The managers are trying to make sense of the results for the year. The actual revenues and costs are listed below: The actual number of units produced was 52,000 units The actual costs for the year were the following: Actual Sale Price $775 per unit Actual Market Size 416,000 units Actual number of computers to be produced and sold 52,000 units Direct Material Pur. and Used 202,000 lbs. at $ 5.12 per lb. $ 1,034,240 Direct Labor 2,550 hrs. at $ 30.50 per hr. $ 77,775 Variable Overhead 12,120 Machine Hours $ 1,640,000 Fixed Overhead $ 3,175,200 Actual Variable Selling $77.50 per unit Actual Fixed Selling & Administration $9,875,000

h. Direct Materials Price Variance Direct Materials Quantity Variance i. Direct Labor Rate Variance Direct Labor Efficiency Variance j. Variable Overhead Spending Variance k Variable Overhead Efficiency Variance l. Fixed Overhead Budget Variance Fixed Overhead Production Volume Variance m. Sales Price Variance Sales Volume Variance n. Market-Share Variance Market-Size Variance