Andrew Scheid Ltd manufactures kitchen cabinets. The company’s budget for fixed costs per month is $7,500 and budgeted variable costs per cabinet are:

The company had budgeted to make and sell 1,000 cabinets per month at a selling price of $150 each. However, in June, the actual figures were as follows:

Required

Calculate the following:
1. Static-budget and actual operating income
2. Static-budget variance for operating income
3. Flexible-budget operating income
4. Flexible-budget variance for operating income
5. Sales-volume variance for operating income
6. Price and efficiency variances for direct manufacturing labor
7. Flexible-budget variance for direct manufacturing labor

Transcribed Image Text:

Direct materials Direct labor Variable costs 15 sq. meter at $4.50 per sq. meter 5 hours at $6 per hour 5 hours at $3 per labor hour $67.50 $30.00 $15.00