A company manufactures pens in packs of 12. The sales representatives in the sales department are paid commissions for 5% of the total revenue amount. The budgeted values for November 2021 are as follows:

At the end of November, the controllers noted that the actual results are as follows:

a. (1.5 point) Calculate the sales-volume variance of the operating income for November 2021. Show your calculations.

b. (0.5 points) Explain what causes the sales-volume variance you just found (respond in a maximum of 3lines).

c. (1 point) Calculate the flexible-budget variance of the operating income for November 2021. Show your calculations.

d. (1 point) Explain what causes the flexible-budget variance you just found in terms of costs (respond in a maximum of 10 lines).

Budgeted values for November 2021 Expected sales 1,200,000 packs Selling price per pack 14.99 Direct material cost per pack 4 Direct manufacturing labor cost per hour 15.20 Labor productivity in packs per hour 32 Sales commissions 5% of revenues Fixed overhead 2,910,000 Actual results for November 2021 Unit sales 10% less than planned Selling price 16.80 per pack Direct material costs 5.90 Direct manufacturing labor cost per hour 15.40 Labor productivity 48 packs per labor hour Sales commissions 5% of revenues Fixed overhead 2,650,000 per pack