Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 1,050 units for $725 each. During this month, the company incurred $567,000 total variable costs and $180,800 total fixed costs. The master (static) budget data for the month are as given in Exhibit 14.1.

Required:

1. Prepare a flexible budget for the production and sale of 1,050 units.

I ONLY NEED HELP WITH VARIABLE EXPENSES

3. Compute for October 2019:

a. The total flexible-budget (FB) variance

b. The total variable cost flexible-budget variance

*I am not sure what you mean by cost schedules. This is all the information the question has.

EXHIBIT 14.1 Comparison of Actual and Budgeted Operating Income (3) Variances SCHMIDT MACHINERY COMPANY Analysis of Operating Income For October 2019 (1) (2) Actual Operating Income Master (Static) Budget Units 1,000 Sales $639.600 100% $800,000 100% Variable costs 350.950 55 450,000 Contribution margin $288,650 45% $350,000 44% Fixed costs 25 150,000+ 19 Operating income $128,000 20% $200,000 25% 780 2200 $ 160,400U 56 99,050F $ 61,350U 160.650*** 10,650U $ 72,000U *U denotes an unfavorable effect on operating income. **F denotes a favorable effect on operating income. ***Actual fixed factory overhead cost = $130,650; actual fixed selling and administrative costs = $30,000. #Budgeted fixed factory overhead cost = $120,000; budgeted fixed selling and administrative costs = $30,000