Assume that in October 2022 the Schmidt Machinery Company (Exhibit 141) 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 141 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. Comparison of Actual and Budgeted Operating Income Units SCHMIDT MACHINERY COMPANY Analysis of Operating Income For October 2022 (1) (2) Actual Operating Income Master Budget 780 1,000 S 639,600 100% S 800,000 10096 350,950 55 450,000 56 S 288,650 45% $ 350,000 44% 25 150,000 19 $ 128,000 209 $ 200,000 25% Sales (3) Variances 220 U $ 160,400 99,050 F S 61,350 U 10,650 S 72.000 Variable costs Contribution margin Fixed costs 160,650*** Operating income U denotes an unfavorable effect on operating income E denotes a favorable effect on operating income *Actual fixed factory overhead cost = 5130,650; actual fixed selling and administrative costs - 530,000. Badgeted fixed factory overhead cost $120,000; budgeted fixed selling and administrative costs - 530,000. 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. Show le a. The total flexible budget variance b. The total variable cost flexible budget variance c. The total fixed cost flexible budget variance d. The selling price variance Required 3