Problem VI $(18$ min., $18$ pts$)$

L'ecole Company manufactures various types of furniture and equipment for schools. In $2022,$ L'ecole management accountant gathered the following standards related to the production of school desks:

Actual results related to the production of school tables in $2022$ follow:

$\backslash$table$[[,$Actual,$],[$Units produced and sold,$87,000,],[$Revenues $($SPU$),$$$75$ per unit,$],[$DM$,$$$26$ per unit,$5\mathrm{.}2$ pounds per unit of output at $$5$ per pound $2022$ follow:$],[$DL$,$$$15\mathrm{.}2$ per unit,$0\mathrm{.}80$ hours per unit of output at $$19$ per hour$],[$Variable MOH,$$8$ per unit,$],[$Fixed costs,$$525,000,]]$

Actual Quantity of Direct material incurred is $452,400$ pounds.

Simon Michel, the business manager for the production of school desks is overall pleased with the performance of his business unit and is expecting a high end$-$year bonus.

Complete the following table. Specify if variances are favorable $($F$)$ or unfavorable $($U$).(12$ pts$)$

$\backslash$table$[[,$Actual Results,$\backslash$table$[[$Flexible Budget$],[$Variance $($FBV$)]],$Flexible Budget$],[$Units$,,,],[$Revenues$,,,],[$DM costs,,,$],[$DL costs,,,$],[$Variable MOH costs,,,$],[$Fixed costs,,,$],[$Operating income,,,$]]$

Consider the figures related to direct materials in the above table and explain the reasons of any variance by calculating and interpreting the price and efficiency variances related to direct materials ONLY $(4pts).Is$ the Busines ${?}_{(})$ Manager's optimism justified? Should he be more concerned? $(2$ pts$)$