Blauwvogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorbtion costing manufacturing costs per product are:

Material 2kg at $3

Variable cost $2

Fixed cost $6

$14

The variable selling costs are $2 per unit, and the fixed selling costs are $400,000 per year.

The normal production and sales are 100,000 units per year. The budgeted production for 2014 is 90,000 units, the budgeted sales for 2014 are 80,000 units. During 2014, the selling price will be $25 per unit.

On Dec 31 2014, the following actual data are given:

Production: 84,000 units

Sales: 82,000 units

Selling price: $24 per unit

Purchase price of material: $3.50 per kg

Use of material: 160,000 kg

Variable costs of production department: $2 per unit

Fixed costs of production department: $580.000

Variable costs of selling department: $2.50 per unit

Fixed selling costs: $400,000

1. Caculate the static budget variance for operating income

2. Divide your answer to 1 into the flexiable budget variance for operating income and the sales volume variance for operating income

3. Divide your answer to 2 into individual variances

4. Divide your answer to 3 into subvariances, if applicable.