Georges road & Reels manufactures and sells various types of fishing equipment. In early 2016,

Rogers had estimated for the production and sales of 15,000 bass fishing rods. Each rod has a

standard rate of 1.50 pounds of direct material at a standard rate of $8.00 per pound and 15

minutes of direct labor time at a standard rate of $.18 per minute. During 2018, Rogers actually

produced and sold 16,000 rods. These 16,000 rods had an actual direct materials cost of

$179,200 (25,600 pounds at $7.00 per pound) and an actual direct labor cost of $44,800

(224,000 minutes at $.20 per minute). Each rod sells for $50.00.

Required:

1. Calculate Rogers net operating income based on a flexible budget.

2. Calculate Rogers flexible budget variance.