Variance Analysis Problem

Zippo manufactures plastic outdoor chairs. The controller put together the following static budget and actual income statements and the following additional information.

$\backslash$table$[[,$Actual,Static Budget$],[$Revenue$,715,000,600,000],[$Direct materials,$287,375,250,000],[$Direct manufacturing labor,$250,250,150,000],[$Variable overhead,$96,250,50,000],[$Fixed overhead,$90,000,100,000],[$Operating income,$(8,875),50,000]]$

Budget Information

Zippo expects to sell $50,000$ chairs during the year

Each chair is budgeted to use $10$ pounds of plastic and take $\frac{1}{2}$ hour to manufacture

Variable and fixed overhead are allocated based on direct manufacturing labor hours

Actual Performance

Zippo sells $55,000$ chairs during the year

Each chair used $9\mathrm{.}5$ pounds of plastic and $0\mathrm{.}7$ hour to manufacture

Direct Cost Variance Questions

Prepare a flexible budget

What are the level $2$ variances $($for operating income only$)?$

Compute price and efficiency variance for both direct material and direct manufacturing labor

Comment on the level $3$ variances you computed

Please provide step by step solution on how to solve!