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Comprehensive variance analysis review. Sonnet Inc. has the following budgeted standards for the month of March 2010:
Average selling price per diskette Total direct material cost per diskette Direct manufacturing labor Direct manufacturi
Sales of 2,000,000 units are budgeted for March. Actual March results are:
Unit sales and production totaled 90% of plan.
Actual average selling price declined to $4.80.
Productivity dropped to 250 diskettes per hour.
Actual direct manufacturing labor cost is $15 per hour.
Actual total direct material cost per unit dropped to $0.80.
Actual direct marketing costs were $0.30 per unit
Fixed overhead costs were $30,000 below plan.
1. Static-budget and actual operating income
2. Static-budget variance for operating income
3. Flexible-budget operating income
4. Flexible-budget variance for operating income
S. Sales-volume variance for operating income
6. Price and efficiency variances for direct manufacturing labor
7. Flexible-budget variance for direct manufacturing labor
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