Problem 2 (30 points): King Kong Statuary manufactures bust statues of famous cinematic figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2010: Expected production and sales 7,500 units Total fixed costs $1,800,000 Standard quantities and standard prices follow for direct materials and direct manufacturing labor. Standard quantity Standard price per unit Direct materials 7 pounds $ 34 per pound Direct manufacturing labor 3 hours $ 18 per hour During 2010, actual number of units produced and sold was 8,500. Actual cost of direct materials used was $1,872,000, based on 52,000 pounds purchased at $36 per pound. Direct manufacturing labor-hours actually used were 34,000, at the rate of $24 per hour. Actual fixed costs were $1,990,000. There were no beginning or ending inventories. Required 1. Calculate sales-volume variance and flexible-budget variance for total costs. Sales volume variance for total costs: Flexible-budget variance for total costs: 2. Compute price and efficiency variances for direct materials and direct manufacturing labor