Assume that in October 2022 the Schmidt Machinery Company manufactured and sold 930 units for $852 each. During this month, the company incurred $455,700 total variable costs and $181,700 total fixed costs. The master budget data for the month are as given.

Required:

1. Prepare a flexible budget for the production and sale of 930 units.

2. Compute for October 2022:

a. The sales volume variance, in terms of operating income. Indicate whether this variance was favourable or unfavourable.

b. The sales volume variance, in terms of operating income. Indicate whether this variance was favourable or unfavourable.

3. Compute for October 2022:

a. The total flexible budget variance. Indicate whether this variance was favourable or unfavourable.

b. The total variable cost flexible budget variance. Indicate whether this variance was favourable or unfavourable.

c. The total fixed cost flexible budget variance. Indicate whether this variance was favourable or unfavourable.

d. The selling price variance. Indicate whether this variance was favourable or unfavourable.

Required 1:

Unit sold
Sales
Variable costs
Contribution Margin
Fixed Costs

Required 2:

	Sales Volume Variance
Operating Income
Contribution Margin

Required 3:

			Fav/Unfav
a.	The Total flexible variance
b.	The total variable cost flexible budget variance
c.	The total fixed cost flexible budget variance
d.	The selling price variance

Please provide Step by Step explanation to help me understand the whole calculation process.