ANSWER WITH COMPLETE FORMULAS Samson Equipment Ltd. is a firm that makes The Ab Rippler, an abdominal exerciser.

The following data pertains to three of the company's 2018 activities:

Actual Activity Activity Level Cost Driver Budget Cost Manufacturing Output unit Rate per Output unit/Batch Static Actual Activity Activity Level Cost Driver Budget Cost Manufacturing Output unit

Hours on machine $0.90 $1.05

Packaging Batch Packaging hours $5.50 $5.25 Inspecting Batch Inspection hours $15.00 12.50 Inspecting Batch Inspection hours $15.00 12.50 Inspecting Batch Inspection hours $15.00 12.50 Inspecting Batch Inspection hours $1

The number of units generated is the output metric.

Static

Actual\sBudgetAmount

The total number of units produced was 40,000, with 44,400 being the total number of units produced.

16,000 14,800 16,000 14,800 16,000 14,800 16,000 14,800 16,000 14,800 16,000 14,

In terms of the number of units produced, the batch size is:

Packaging 20 25 Inspection 5 4 Inspection 5 4 Inspection 5 4 Inspection 5 4 Inspection 5 4 Inspection

Required: a. For each activity in 2018, calculate the flexible-budget variance.

b. For each activity in 2018, calculate the price and efficiency variances.