Use the standard price and cost data provided in Exercise 8-1A.
In Exercise 8-1A, Allard Manufacturing Company established the following standard price and cost data.
Sales price ............... $10.00 per unit
Variable manufacturing cost ........ $6 per unit
Fixed manufacturing cost ......... $3,000 total
Fixed selling and administrative cost ...... $1,000 total
Allard planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units.

Assume that the actual sales price is $9.80 per unit and that the actual variable cost is $5.75 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative costs are $1,025.

Required
a. Determine the flexible budget variances.
b. Classify the variances as favorable (F) or unfavorable (U).
c. Provide another name for the fixed cost flexible budget variances.
d. Comment on the usefulness of the variances with respect to performance evaluation and identify the member(s) of the management team who is (are) most likely to be responsible for these variances.