$4$

RTI Company's master budget calls for production and sale of $18,100$ units for $$81,450,$ variable costs of $$30,770,$ and fixed costs of

$$18,000.$ During the most recent period, the company incurred $$34,100$ of variable costs to produce and sell $18,000$ units for $$84,000.$

During this same period, the company earned $$23,000$ of operating income.

Required:

Determine the following for RTI Company: $($Do not round intermediate calculations. Round your answers to the nearest whole

dollar.$)$

a$.$ Flexible budget operating income.

b$.$ Flexible budget variance, in terms of contribution margin. Was this variance favorable or unfavorable?

c$.$ Flexible budget variance, in terms of operating income. Was this variance favorable or unfavorable?

d$.$ Sales volume variance, in terms of contribution margin. Was this variance favorable or unfavorable?

e$.$ Sales volume variance, in terms of operating income. Was this variance favorable or unfavorable?

Answer is complete but not entirely correct.