1. The Master (Static) budget for Jack Daniels Inc. is presentedbelow. For June, Jack Daniels Inc. manufactured and sold 920 unitsfor $835. During this month the company incurred $460,000 totalvariable expenses and $180,000 total fixed expenses.
   1. Required
      1. Prepare a flexible budget performance report for June includingall variances.

         Master(Static) Budget

Units	1,000
Sales	$800,000
Variable costs	450,000
Contribution margin	$350,000
Fixed costs	150,000
Operating income	$200,000

2. Jack Daniels Inc. used 3,450 pounds of aluminum in June tomanufacture 920 units. The company paid $28.50 per pound during themonth to purchase aluminum. On June 1, the company had 50 pounds ofaluminum on hand. At the end of June, the company had only 30pounds of aluminum in its warehouse. Daniels used 4,340 directlabor hours in June, at an average cost of $41.50 perhour.  The standard for aluminum is 4 pounds per unit ata standard cost of $25.00 per pound. The standard for direct laboris 5 hours per unit at a standard rate of $40 per hour.
   1. Compute for June, Jack Daniels Inc.
      1. Purchase price variance for aluminum
      2. Direct labor rate and efficiency variance
   2. Daniels deployed new strategies for both aluminum and labor.For aluminum and labor they invested in better inputs. Didmanagement make good decisions?