IV. Flexible budget and Price and efficiency variances. Qu Jacobs Company has the following budgeted data: Selling price budgeted: $50 variable costs per unit: (a.) direct material - $4.00; (b) direct labour - $6.00; (c) indirect materials - $1.50, (d) indirect labour - $1.00; (e) other variable factory overhead - $3.00. Fixed overhead costs are expected to be: (a) utilities - $28,500; (b) supervisors salaries - $45,000 (c) depreciation -$62,000; (d) other fixed overhead - $18 0. A. Prepare a flexible budget for the following levels of production: 6,000 units; 10,000 units and 14,000 units, what is the purpose of it? B) Jacobs Company manufactures ceramic tiles. For January 2020, it budgeted to purchase and use 10,000 pounds of clay at $0.70 a pound. Jacobs Company budgeted this material for 40,000 ceramic tiles. Actual purchases and usage for January 2020 were 11,000 pounds at $0.65 a pound. Jacobs Company's actual output was 43,000 ceramic tiles. 1. Compute the flexible-budget variance for Direct Material. 2. Compute the direct material price and efficiency variances. Comment on the results for requirements 1 and 2 and provide a possible explanation for them