Assume that in October $2022$ the Schmidt Machinery Company $($Exhibit $14\mathrm{.}1)$ manufactured and sold $980$ units for $$750$ each. During this month, the company incurred $$529,200$ total variable costs and $$181,300$ total fixed costs. The master budget data for the month are as given in Exhibit $14\mathrm{.}1.$

Required:

$1.$ Prepare a flexible budget for the production and sale of $980$ units.

$2.$ Compute for October $2022$:

a$.$ The sales volume variance, in terms of operating income. Indicate whether this variance was favorable or unfavorable.

b$.$ The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable or unfavorable.

$3.$ Compute for October $2022$:

a$.$ The total flexible budget variance. Indicate whether this variance was favorable or unfavorable.

b$.$ The total variable cost flexible budget variance. Indicate whether this variance was favorable or unfavorable.

c$.$ The total fixed cost flexible budget variance. Indicate whether this variance was favorable or unfavorable.

d$.$ The selling price variance. Indicate whether this variance was favorable or unfavorable.