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Use the following information to answer the two questions below. L&J Bioscience produces a generic statin pill that is used to treat patients with high cholesterol. L&J employs a team of sales representatives who are paid varying amounts of commission. Given the narrow margins in the generic drugs industry, L& J relies on tight standards and cost controls to manage its operations. L&J has the following budgeted standards for the month of April 2015:

Average selling price per pack $7.20

Total direct materials cost per pack $1.80

Direct manufacturing labor cost per hour $14

Average labor productivity rate (packs per hour) 280

Sales commission cost per pack $0.36

Fixed administrative and manufacturing overhead $960,000

L&J budgeted sales of 1,400,000 packs of April. At the end of the month, the Director of Finance revealed that actual results of April had deviated from the budget in several ways: A. Units sales and production were 90% of plan. B. Actual average selling price increased to $7.30. C. Productivity dropped to 250 packs per hour. D. Actual direct manufacturing labor cost was $15 per hour. E. Actual total direct material cost per unit increased to $1.90. F. Actual sales commissions were $0.30 per pack. G. Fixed overhead costs were $12,000 above budget.

What is the operating income of the static planning budget for April 2015 ?

A. 6744000

B. 6026000

C. 5380416

D. 6285600

E 5025600

What is the overall revenue and spending variance for operating income for April 2015 ?

A. 51000 F

B. 51000 U

C. 643584 F

D. 643584 U

E. 59184 U

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