Your company uses a standard costing system. At the beginning of the month, you budget to produce and sell 100 items. Actual units produced are 120. Standards for direct material are 4 lbs per unit at a standard price of $3 per pound. Actual material purchased and used was 450 lbs. Actual price paid was $2.90 lb. All units produced were sold. Consider direct material cost and calculate the following:
A) Static budget variance
b) Flexible budget variance
c) Sales volume variance
d) Efficiency variance
E) Price variance
label each variance with its name and favorable or not