Kevin Jarvis is the controller of Bitterroot Industries. Kevin prepared the following budgeted income statement at various levels of sales. After careful review of the budgeted income statements, and after discussions with the sales and production managers, the CEO determines that the best alternative is to base the budget on a sales volume of 30,000 units. 20,000 $1,240,000 30,000 40,000 Sales $1,860,000 $2,480,000 Variable costs Direct material 340,000 510,000 680,000 Direct labor 300,000 450,000 600,000 Overhead 360,000 1.000.000 540,000 720,000 Total variable costs 1.500.000 2.000.000 Contribution margin 240,000 360,000 480,000 Fixed costs Overhead 62,000 62,000 62,000 Rent 46,000 46,000 46,000 28,000 28,000 15.000 151.000 $329.000 Insurance 28,000 Advertising Total fixed costs 15,000 151.000 $8.000 15.000 151.000 $209.000 Operating income Actual results for the year were 28,000 units, reflected in the following income statement: 28,000 $1,764,000 Sales Variable costs Direct material 504,000 Direct labor 434,000 Overhead 509.600 1.447.600 Total variable costs Contribution margin 316,400 Fixed costs Overhead 64,200 Rent 45,800 Insurance 29,100 Advertising Total fixed costs 14.000 153.100 Operating income $163.300 1. What is the flexible budget variance for direct material? 2. What is the flexible budget variance for direct labor? 3. What is the sales volume variance for direct material? 4. What is the flexible budget variance for variable overhead?