Comprehensive variance analysis review. Edgar Animal Health, Inc., produces a generic medication used to treat cats with feline diabetes. The liquid medication is sold in 100ml vials. Edgar employs a team of sales representatives who are paid commissions.

Given the narrow margins in the generic veterinary drugs industry, Edgar relies on tight standards and cost controls to manage its operations. Edgar has the following budgeted amounts for the month of October 2020:

Average selling price per vial	$8.00
Total direct materials cost per vial	$3.50
Direct manufacturing labor cost per hour	$15.00
Average labor productivity rate (vials per hour)	100
Sales commission cost per vial	$0.70
Fixed administrative and manufacturing overhead	$900,000

Edgar budgeted sales of 750,000 vials for October. At the end of the month, the controller revealed that actual results for October were as follows:

Unit sales and production were 80% of plan.

Actual average selling price decreased to $8.10.

Productivity increased to 120 vials per hour.

Actual direct manufacturing labor cost was $15.10 per hour.

Actual total direct material cost per unit increased to $3.60.

Actual sales commissions were $0.75 per vial.

Fixed overhead costs were $100,000 above budget.

Calculate the following amounts for Edgar for October 2020:

Static-budget and actual operating income

Static-budget variance for operating income

Flexible-budget operating income

Flexible-budget variance for operating income

Sales-volume variance for operating income

Price and efficiency variances for direct manufacturing labor

Flexible-budget variance for direct manufacturing labor