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Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. The company manufactures two environmentally

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Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating results for the past year. The company manufactures two environmentally friendly industrial caliber cleaning machines used primarily in automobile repair shops, gas stations, and auto dealerships. The master budget and operating results for the year (000s omitted except for the selling price per unit) follow: Actual Budget T10 S40 T10 S40 Sales $ 141,600 $ 59,007 $ 113,000 $ 53,000 Variable cost 61,700 19,400 50,000 25,000 Contribution $ 79,900 $ 39,607 $ 63,000 $ 28,000 Fixed cost 10,000 10,000 10,000 10,000 Operating income $ 69,900 $ 29,607 $ 53,000 $ 18,000 Units sold 1,200 1,513 Unit selling price $ 100 $ 40 Required: 1. Compute the contribution margin flexible-budget variance, contribution margin sales volume variance, contribution margin sales quantity variance, and contribution margin sales mix variance for each product and for the firm. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.) CM Flexible budget variance CM Sales volume variance CM Sales quantity variance CM Sales mix variance T10 Favorable Favorable Favorable Unfavorable S40 Favorable Favorable Favorable Total Favorable Favorable Favorable Unfavorable Favorable

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