Question: Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report: REQUIRED What

Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report:

REQUIRED
What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing labour? Based on your results, explain why the static budget was not achieved.

Actual Results S18,870 8,820 Static Budget $25,000 12,500 Variance Direct materials Direct manufacturing labour $6,130 F 3,680 F

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