Identify the direct cost variances on the variance report shown and breifly describe the reasons for the variances. Flexible Budget Variance Sales Volume Variance Master (Static) Budget Flexible Budget Actual F/U F/U Sales volume (units) 51,000 51,000 4,000 F 47,000 Sales revenue $ 3,315,000 $ 357,000 U $ 3,672,000 S 288,000 F $ 3,384,000 Variable costs: Direct materials cost Direct labor cost Overhead cost - variable Selling, General Admin costs - variable Total variable costs 1,071,000 765,000 510,000 204,000 2,550,000 204,000 153,000 102,000 51,000 204,000 F F U U F 1,275,000 918,000 408,000 153,000 2,754,000 100,000 72,000 32,000 12,000 216,000 U U U U U 1,175,000 846,000 376,000 141,000 2,538,000 Contribution margin 765,000 153,000 U 918,000 72,000 F 846,000 Fixed costs: Overhead cost-fixed Selling, General Admin costs - fixed Total fixed costs 114,000 69,000 183,000 6,400 2,000 4,400 F U F 120,400 67,000 187,400 120,400 67,000 187,400 Net operating income $ 582,000 $ 148,600 U $ 730,600 $ 72,000 $ 658,600