**Text Content for Educational Website:**Budgeted input price was $9 per pound. You budgeted to use 2 pounds of materials per unit. Budgeted production and sales volume was 5,000 units. Actual production and sales volume was 5,500 units, and you used a total of 10,945 pounds of materials. Actual input price was $8 per pound. The input price and input efficiency variances are:- ○ input price = F; input efficiency = F - ○ not enough information – need to know the flexible budget - ○ input price = U; input efficiency = U - ○ input price = U; input efficiency = F - ○ input price = F; input efficiency = U **Explanation of Choices:**- **F (Favorable)**: Indicates that the variance is better than expected.- **U (Unfavorable)**: Indicates that the variance is worse than expected.**Understanding Variances:**- **Input Price Variance**: Difference between the actual input cost and the budgeted input cost.- **Input Efficiency Variance**: Difference between the actual quantity of inputs used and the budgeted quantity allowed for actual output.

Answer : answer is Input price = F; Input efficiency = FActual price of input $8 is lower than budgeted price of $9 of input so input price variance is Favorable (F) Actual quantity used10,945 is lower than budgeted quantity used 11,000 (5500*2) so input efficiency variance is Favorable (F) So, Input price = F; Input efficiency = F