ToasToe Inc. {TI} is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president wants to install a exible budgeting system, rather than the single master budget being used at presenL The following data are available for expected costs for production. The relevant range of production levels for xed overhead costs is 90,000 to 200,000 units: Variable costs: Manufacturing $16.25funit Administrative $ 7.25funit Selling $ 5.25funit Fixed costs: Manufacturing $ 238,960 Administrative 5 122,560 Required: Prepare a exible budget for each of the three possible sales levels: 124,000, 134,000, and 144,000 units. Each toaster oven is expected to sell for $25.60. Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit onoom follow: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 4.20 kilograms 5 1.90 per kilogram 5 7.98 Direct labour 0.40 hour $10.00 per hour 4-.00 Variable overhead 0.40 hour 5 1.60 per hour 0.64 The budgeted xed overhead cost is $14,610 per month. The denominator activity level ofthe allocation base is 800 direct labour hours. During the most recent month, the following activity was recorded: a. 9,700 kilograms of material were purchased at a cost of $2.18 per kilogram. b. A total of 860 hours of direct labourtime was recorded at a total labour cost of $9,160. c. The variable overhead cost was $1,580, and the fixed overhead cost was $14,?04. Assume that the company produced 1,200 units, using 6,500 kilograms of material in the production process. {The rest ofthe material purchased remained in inventory.) Required: 1. Compute the direct materials price and quantityr variances for the month. [Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect [i.e., zero variancej.) Materials price variance Materials quantity valiance