Assume that in June Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 970 units for $837 each. During this month the company incurred $499,550 total variable expenses and $180,200 total fixed expenses.

Required for the Month of June:
1.	Prepare a flexible budget for the production and sale of 970 units.

2.	Compute for June:

a.	The sales volume variance, in terms of operating income.
b.	The sales volume variance, in terms of contribution margin. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

3.	Calculate for June: (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)