Assume that in October 2022 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 1.070 units for $847 each During this month, the company incurred $460,100 total variable costs and $181.200 total fixed costs. The master budget data for the month are as given in Exhibit 14.1. Required: 1. Prepare a flexible budget for the production and sale of 1,070 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 Complete this question by entering your answers in the tabs below. Comparison of Actual and Budgeted Operating Income SCHMIDT MACHINERY COMPANY Analysis of Operating Income For October 2022 (1) (2) Actual Operating Income Master Budget Variances Units 780 1.000 2200 Sales S 639,600 100% S 800,000 100% $ 160,400 U Variable costs 350,950 SS 450.000 56 99,050 F Contribution margin S 288,650 45% $ 350,000 44% S 61,350 U Fixed costs 160.650 25 150,000 19 10.650 U Operating income S 128.000 20% S 200.000 2596 $ 72,000 U 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 - 530,000 Budgeted fixed factory overtread cost - 5120,000, budgeted fixed selling and administrativo costs - 530,000 Required: Required 2 Required 3 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. -32 Show less Sales Volume Variance Operating income Contribution margin