$7-23$ Flexible$-$budget preparation and analysis. Dartford Enterprises Ltd manufactures just one prod$-$

uct line of scientific calculators for engineers. The current standard cost of one unit of the product is as

follows:

During last month, due to an unexpected fall in demand for the product, only $15,000$ units were made and

sold.

The actual results for last month were as follows:

Prepare a static$-$budget$-$based variance analysis of last month's performance.

Prepare a flexible$-$budget$-$based variance analysis of last month's performance.

Which department manager$($s$)$ contributed the most to the success or failure of the budget during the

month? Explain your answer.

$7-26$ Price and efficiency variances. Modern Tiles Ltd$.$ manufactures ceramic tiles. For January $2020,$

it budgeted to purchase and use $10,000$ pounds of clay at $$0\mathrm{.}70$ a pound. Actual purchases and usage for

January $2020$ were $11,000$ pounds at $$0\mathrm{.}65$ a pound. Modern Tiles Ltd$.$ budgeted for $40,000$ ceramic tiles.

Actual output was $43,000$ ceramic tiles.

Compute the flexible$-$budget variance.

Compute the price and efficiency variances.

Comment on the results for requirements $1$ and $2$ and provide a possible explanation for them.

$7-27$ Materials and manufacturing labor variances. Consider the following data collected for Theta

Homes, Inc.:

Compute the price, efficiency, and flexible$-$budget variances for direct materials and direct manufacturing

labor.