Use the following information for questions 2528 on the next page - you will be wing this information to answer a series of questions about both budgets and variances: Sunsets is a small beach shop on the boardwalk in Belmar, New Jeney. They sell sevenil types of "beachy" clothing - bathing suits, coverups, etc. They make everything they sell. In the past. Sunsets has catered to women only and sold only clothes for women. However, they realize then there is also a market for "beachy" elothes for men - so they are trying out a new iten for the coming summer: men's board shorts. These will be offered in a variety of colors and patherns. In putting their board shorts budget together, Sunsets must consider several things bow much they should charge for the shorts, the quality of the fabric to be used, the experience-tevel of employees (to sew the shorts) to be hired, etc. Because the board shorts are a new product, the owner of Sunsets is very interested in the budget vs. actual results for Junc. Below is some important budget and actual information related to the board shorts that Sunsets sold during the month of June: For simplicity, assume Sunsets sells all the board shorts prounme.. no beginaing or ending inventory of finished board shorts). Sunsets does maintain an inventor of dired materials (yards of fabric). The company started June with 26 yards and bad target ending inventory of 60 yards. For questions 25 and 26 you will be using the static budger information to answer questions about budgets for direct materials and labor (Chapier 7). For questions 27 and 28 you will be calculating different variances (Chapter 8 ). 9 25. What is the materials purchase budget for June in units (yands of fabric)? a. 34 yards b. 1,860 yards c. 1,800 yards d. 1,834 yards 26. What is the direct labor costs budget for June in dollan? a. $3,375 b. $2,975 c. $54,000 d. $13,500 27. What is the selling-price variance (variance caused by the actual selling price being different than the budgeted amount)? a. 54,500F b. $4,500U c. $4,375F d. 54,375U 28. What is the efficiency variance for direct materials (variance in amouat of materials esed vs. what was allowed)? a. $311.50F b. $311.50U c. $345.63F d. $345.63U 29. Willie T's Restaurant Supply planned to use $140 of material per unit hut actually used $153 of material per unit, and planned to make 1,100 units but actually made 940 untis. The flexible-budget amount for materials is a. $154,000 b. $131,600 c. $168,300 d $143,820