7-37 Comprehensive variance analysis review. Blauw vogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorp costs per product are: Material Variable costs Fixed costs s 2 S 6 $14 The variable selling costs are S2 per unit, and the fixed selling costs are $400,000 per year The normal production and sales are 100,000 units per year. The budgeted production for 20 units, the budgeted sales for 2014 are 80,000 units. During 2014, the selling price will be $25 per unit. On Dec. 31, 2014, the following actual data are given: 14 is 90,000 Production: 84,000 units Sales: 82,000 units Selling price: $24 per unit Purchase price of material: $3.50 per kg Use of material: 160,000 kg Variable costs of production department: $2 per unit Fixed costs of production department: $580.000 . Variable costs of selling department: $2.50 per unit Fixed selling costs: $400,000 1. Calculate the static budget variance for operating income. 2. Divide your answer to 1 into the flexible budget variance for operating income and the sales volume 3. 4. variance for operating income. Divide your answer to 2 into individual variances Divide your answer to 3 into subvariances, if applicable