Reference no: EM133060937

Question - HOHOHO Inc. has provided you with the following information:

Budgeted sales 1500 units

Budgeted selling price $120

Standard cost of direct materials per unit 2 meters X $30 per meters = $60

Standard quantity of direct labour per unit 1 hour x $ 25 per hour = $25

Standard fixed costs (total) $10,000

Actual sales 1450 units

Actual selling price $120

Actual cost of direct materials per unit 1.8 meters X $25 per meters = $45

Actual cost of direct labour per unit 1.25 hours x $20 per hour = $25

Actual fixed costs ( total) $10,000

a. Using the table provided for you, prepare a performance report including a

Static budget

Actual results

Flexible budget

Volume variance

Flexible budget variance

b. Compute the direct materials price and quantity variances?

c. Compute the direct labour rate and efficiency variances?