CoursHeroTranscribedText: Question 6 Furniture Inc. manufactures and sells tables. The company currently manufactures and sells three models: Basic, Contemporary, and Antique. For the 2019 financial year, the budgeted average selling price per table was: $30 for the Basic table, $45 for the Contemporary table, and $60 for the Antique table. The standard material cost per table consists of four square feet of oak wood at a purchased price of $3 per square foot. The standard labor cost per table consists of 1.2 labor hour at a rate of $10 per labor hour. The fixed costs for both manufacturing and selling & administrative activities were budgeted at $527 000. For the 2019 financial year, the budgeted sales were 30 000 Basic tables, 18 000 Contemporary tables, and 12 000 Antique tables. Furniture Inc. estimated to obtain 5% of the industry volume for the 2019 financial year. Furniture Inc. actual results for the 2019 financial year were the following: Sales Basic 49 000 tables $1,300,000 Contemporary 14 000 tables $700,000 Antique 7 000 tables $485,000 Total $2, 485,000 Variable costs Material 277 000 square feet $781,000 Labour 102 000 labor hours $969,000 Fixed costs $549,000 Operating Income $186,000 The actual industry volume for the financial year 2019 was 1 000 000 tables. Required: You must provide all the detailed supporting calculations. a. Reconcile the budgeted operating income in 2019 to the actual operating income in 2019 by computing all meaningful variances for 2019. b. Based on your analysis of the 2019 results, provide some recommendations that would have been useful in the preparation of the 2020 operating budget