Comprehensive Variance Problem Best Kayaks makes molded plastic kayaks. Standard costs for an entry-level whitewater kayak are as follows: Direct materials, 60lbs. at $5.50/lb $330 Direct labor, 2.5 Direct labor hours (DLH) at $16/DLH $40 Total budgeted fixed overhead amounts to $10,800 per month. Each month, the company expects to produce and sell 450 kayaks at $500 per kayak. Budgeted selling and administrative costs (all fixed) amount to $6,000 per month. During March, Best Kayaks produced and sold 400 kayaks, and had the following actual results: Revenues $206,800 Direct materials purchased and used Direct labor -Overhead Selling and administrative costs 26,000 pounds at $5.25/lb. 940 DLH at $16.50/DLH $10,900 $5,200 Management is unhappy with the results. You are asked to prepare the static budget for march, and reconcile the budgeted operating income for March with the actual operating income for the month by computing all relevant variances.