Assume that in October $2022$ the Schmidt Machinery Company $($Exhibit $14\mathrm{.}1)$ manufactured and sold $1,090$ units for $$780$ each. During this month, the company incurred $$523,200$ total variable costs and $$181,600$ total fixed costs. The master budget data for the month are as given in Exhibit $14\mathrm{.}1.$Required:$1.$ Prepare a flexible budget for the production and sale of $1,090$ units$\mathrm{.}2.$ Compute for October $2022$:a$.$ The sales volume variance, in terms of operating income. Indicate whether this variance was favorable or unfavorable.b$.$ The sales volume variance, in terms of contribution margin.$$Indicate whether this variance was favorable or unfavorable$\mathrm{.}3.$ 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.$$Indicate whether this variance was favorable or unfavorable.d$.$ The selling price variance. Indicate whether this variance was favorable or unfavorable.$$

Assume that in October $2022$ the Schmidt Machinery Company $($Exhibit $14\mathrm{.}1)$ manufactured and sold $960$ units for $$846$ each. During this month, the company incurred $$499,200$ total variable costs and $$181,100$ total fixed costs. The master budget data for the month are as given in Exhibit $14\mathrm{.}1.$

Required:

Prepare a flexible budget for the production and sale of $960$ units.

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.

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.