Tuscany Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2011:

Expected production and sales 6,000 units

Direct materials 72,000 pounds

Direct manufacturing labor 21,000 hours

Total fixed costs $1,200,000

Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor:br>

During 2011, actual number of units produced and sold was 5,500. Actual cost of direct materials used was $668,800, based on 70,400 pounds purchased at $9.50 per pound. Direct manufacturing labor-hours actually used were 18,500, at the rate of $51.50 per hour. As a result, actual direct manufacturing labor costs were $952,750. Actual fixed costs were $1,180,000. There were no beginning or ending inventories.Required1. Calculate the sales-volume variance and flexible-budget variance for operating income.2. Compute price and efficiency variances for direct materials and direct manufacturinglabor.

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Standard Quantity 12 pounds 3.5 hours Standard Price $10 per pound $50 per hour Standard Unit Cost $120 $175 Direct materials Direct manufacturing labor