Sonnet, Inc., has the following budgeted standards for the month of March 2011:

Average selling price per diskette $ 6.00

Total direct material cost per diskette $ 1.50

Direct manufacturing labor

Direct manufacturing labor cost per hour $ 12.00

Average labor productivity rate (diskettes per hour) 300

Direct marketing cost per unit $ 0.30

Fixed overhead $ 800,000

Sales of 1,500,000 units are budgeted for March. The expected total market for this product was 7,500,000 diskettes. Actual March results are as follows:

Unit sales and production totaled 95% of plan.

Actual average selling price increased to $6.10.

Productivity dropped to 250 diskettes per hour.

Actual direct manufacturing labor cost is $12.20 per hour.

Actual total direct material cost per unit increased to $1.60.

Actual direct marketing costs were $0.25 per unit.

Fixed overhead costs were $10,000 above plan.

Actual market size was 8,906,250 diskettes.

Required

Calculate the following:

1. Static-budget and actual operating income

2. Static-budget variance for operating income

3. Flexible-budget operating income

4. Flexible-budget variance for operating income

5. Sales-volume variance for operating income

6. Market share and market size variances

7. Price and efficiency variances for direct manufacturing labor

8. Flexible-budget variance for direct manufacturing labor