Standard quantities standard prices and standard unit costs follow for direct materials and direct manufacturing labor
During 2009 actual number of units produced and sold was 6000. Actual cost of direct materials used was 3594000 based on 54000 pounds purchased at $11 per pound. Direct manufacturing labor-hours actually used were 25000 at the rate of $38 per hour. As a result actual direct manufacturing labor consists were 3850000. Actual fixed costs were $1005000. There were no beginnings or ending inventories.
1. Calculate the sales-volume variance and flexible-budget variance for operating income.
2. Compute price and efficiency variances for direct materials and direct manufacturing labor.