Question - Assume the static budget was prepared for 1,800 units but 1,500 units were actually produced and sold. For the 1,500 units produced and sold the actual raw materials used was $12,000, the actual direct labor used was $17,000 the actual variable overhead was $2,500, the actual fixed costs for materials handling was $10,000 and the actual fixed costs for depreciation was $2,000. Using a three column format as shown in the chapter compute the:
1. Static budget variance
2. Sales volume variance
3. Total flexible budget variance
4. Raw materials flexible budget variance
5. Direct labor flexible budget variance
6. Variable overhead flexible budget variance
7. Fixed overhead flexible budget variances