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Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2021: 5 Click the icon to view the static budget data.) Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labour: B (Click the icon to view the direct materials and direct manufacturing labour data.) Required Requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label each variance as favourable (F) or unfavourable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) The flexible-budget variance for operating income is The sales-volume variance for operating income is Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labour. Compute the price and efficiency variances for direct materials. Label each variance as favourable (F) or unfavourable (U). Price variance Efficiency variance Compute the price and efficiency variances for direct manufacturing labour. Label each variance as favourable (F) or unfavourable (U). Price variance Efficiency variance Direct materials and direct manufacturing labour data Standard Quantity Standard Price Standard Unit Cost Direct materials 12 kilograms $9 per kilogram $108 Direct manufacturing labour 3.8 hours $30 per hour $114 During 2021, actual number of units produced and sold was 5,800, at an average selling price of $740. Actual cost of direct materials used was $633,600, based on 72,000 kilograms purchased at $8.80 per kilogram. Direct manufacturing labour-hours actually used were 19,000, at the rate of $34.30 per hour. As a result, actual direct manufacturing labour costs were $651,700. Actual fixed costs were $1,210,000. There were no beginning or ending inventories. Static budget data Expected production and sales 6,600 units Expected selling price per unit $ 690 Total fixed costs $ 1,250,000 Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2021: 5 Click the icon to view the static budget data.) Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labour: B (Click the icon to view the direct materials and direct manufacturing labour data.) Required Requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label each variance as favourable (F) or unfavourable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) The flexible-budget variance for operating income is The sales-volume variance for operating income is Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labour. Compute the price and efficiency variances for direct materials. Label each variance as favourable (F) or unfavourable (U). Price variance Efficiency variance Compute the price and efficiency variances for direct manufacturing labour. Label each variance as favourable (F) or unfavourable (U). Price variance Efficiency variance Direct materials and direct manufacturing labour data Standard Quantity Standard Price Standard Unit Cost Direct materials 12 kilograms $9 per kilogram $108 Direct manufacturing labour 3.8 hours $30 per hour $114 During 2021, actual number of units produced and sold was 5,800, at an average selling price of $740. Actual cost of direct materials used was $633,600, based on 72,000 kilograms purchased at $8.80 per kilogram. Direct manufacturing labour-hours actually used were 19,000, at the rate of $34.30 per hour. As a result, actual direct manufacturing labour costs were $651,700. Actual fixed costs were $1,210,000. There were no beginning or ending inventories. Static budget data Expected production and sales 6,600 units Expected selling price per unit $ 690 Total fixed costs $ 1,250,000

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