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Question : Suppose the static budget was for 2,


Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report:




Suppose the static budget was for 2,500 units of output-1


Required:
What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing labor? Based on your results, explain why the static budget was not achieved.