Please answer question ASAP. See Attachment.

Problem 6-30 (Part Level Submission)

Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 270 cases off the production line before the end of the month.

But as she glanced over the rest of numbers, Lexi couldn?t help but wonder if there were errors in some of the line items. She was puzzled how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story.

ActualBudgetVarianceCases produced and sold10,2509,980270FavorableSales revenue$1,943,600$1,866,300$77,300FavorableDirect material559,878548,90010,978UnfavorableDirect labor267,115259,4807,635UnfavorableVariable manufacturing overhead284,442279,4405,002UnfavorableVariable selling expenses92,94489,8203,124UnfavorableVariable administrative expenses41,65739,9201,737UnfavorableContribution margin697,564648,74048,824FavorableFixed manufacturing overhead110,778109,780998UnfavorableFixed selling expenses69,36169,860499FavorableFixed administrative expenses129,540129,740200FavorableOperating income$387,885$339,360$48,525Favorable

Lexi picked up the phone and called Irvin. ?Irvin, I don?t get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand what?s going on?? ?Let me look into it and I?ll get back to you,? Irvin replied.

Irvin gathered the following additional information about the month?s performance.