Variance Analysis: Comprehensive practice question The Wooden Craft Toys Company is analyzing the differences between the actual results and the budget for the month of June, 2020. You have been tasked with the following: 1. Creating a flexible budget for the month 2. Analyzing the DM (Purchase) Price Variance and the DM Quantity Variance 3. Calculating the DL Labour Rate Variance and DL Efficiency Variance 4. Calculating the Variable MOH Spending Variance and the VMOH Efficiency Variance 5. Calculating the Fixed MOH Cost Variance and the FMOH Production-Volume Variance (assuming standard costing) Actual Amounts Sales revenues Direct material purchases Direct material usage WIP Direct labour cost Variable overhead Fixed overhead Fixed Budget For the Month of June 2020 $ 432,400 $ 51,870 $ 51,500 $ 188.00 $37.05 $37.05/kg unit kg. 2,300 units (boxes) sold 1,400 kg 1,390 kg $ 148,800 $ 24.00/DLH 6,200 DLH $ 71,500 $ 11.53 DLH 6,200 cost driver: DLH $ 13,100 $ 5.70 unit 2,300 units (boxes) sold Sales revenues $ 440,000 Direct material purchases $ 48,100 Direct material usage (standard 0.6 kg/unit) $ 48,840 Direct labour cost (standard: 3 DLH / unit) $ 165,000 For the Month of June 2020 $ 200.00/unit $37.00/kg $37.00/kg $ 25.00 / DLH 2,200 units (boxes) sold 1,300 kg 1,320 kg 6,600 DLH Variable overhead $ 79,200 Fixed overhead $ 13,200 $ 12.00 / DLH $ 6.00 / unit 6,600 cost driver: DLH 2,200 units (boxes) sold