e le Required: 1. Compute the Static-Budget variance, Flexible-Budget variance, and Sales-volume variance for January 2018 in the table below: + Flexible- Sales Budget Volume- Static Actual Variances Flexible Variances Static Budget Results (2) = (1) - Budget (4) = (3) - Budget Variance (5) Units sold Revenue e e Variable costs e DM DL e Total variable costs le e Contribution margin Fixed costs le Operating income - Contd... Problem 1 (14%) 2. Compute the price and efficiency variances of direct material and direct manufacturing labor for January 2017 in the table below. e Answere 1. DMPVe 2. DMEV e e e 3. DLRV e e e 4. DLEV e e 3. Please provide 3 possible reasons for the material price variance and material efficiency variance. e e e e ABC Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:- Direct materials: 2 lb. at $7.50 per lb. $15.00 Direct manufacturing labor: 0.3 hour at $90 per hour $27.00 The number of finished units budgeted for January 2017 was 20,000; 15000 units were actually produced. Actual results in January 2017 were as follows: Direct materials used: 2.2 lb. x 15,000 = 33,000 lbs @ $7.00 / 1b. Direct manufacturing labor: 0.32 hrs x 15,000 = 4,800 hrs @ $9.5/hr e e le le Assume that there was no beginning inventory of either direct materials or finished units. The following data are for January 2017: Budgetede Actual Number of Lamp solde 20,000 units 15,000 Selling price / unite $80 $85 Variable cost per unite Direct materiale (2 lbs x $7.50 = $15) (2.2 lbs x $7 = $15.40) Direct labore (0.3 hrs x $90 = $27) (0.32 hrs x $95 = $30.40) Fixed cost $240,000 $240,000 During the month, materials purchased amounted to 40,000 lb. @ $7.00, at a total cost of $280,000. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required: 1. Compute the Static-Budget variance, Flexible-Budget variance, and Sales-volume variance for January 2018 in the table below