Please complete the highlight in yellow parts using the following information below?

Selected Variance Explanations Required: Of course you do not have knowledge of what occurred exactly, but draft a possible explanation that could account for the variance (a hypothetical reason). Limit to 1-2 complete sentences. Fragment statements will not receive credit. Volume Variance for Sales Flexible-Budget Variance for Sales Volume Variance for Direct Labor Flexible-Budget Variance for Direct Labor Volume Variance for Selling \& Admin. Expense Flexible-Budget Variance for Selling \& Admin. Expense Level " 0 " Variance in Operating Income \begin{tabular}{|c|c|} \hline & B \\ \hline & \begin{tabular}{l} On the next tab, students will find a contribution margin formatted Income \\ Statement that includes both the Static Budget and Actual Results for one year of \\ operations (tab for informational purposes only.) Students are required to properly \\ calculate the data points listed below which are included in cells highlighted in \\ yellow on the 'Variance Analysis' tab herein. (This tab includes the budgeted and \\ actual income statement figures using cell references.) In summary, students \\ should complete necessary calculations in the following cadence: \end{tabular} \\ \hline 1 & \begin{tabular}{l} Static Budget Variances (Level 1) - Once calculated, students must indicate in the \\ adjacent column, whether the variances calculated are regarded as Favorable or \\ Unfavorable by entering an "F" or "U" as appropriate. \end{tabular} \\ \hline 2 & \begin{tabular}{l} Flexible Budget Line Items - Calculating the Flexible Budget will be necessary in \\ order for students to subsequently calculate Level 2 variances which dissaggregate \\ and explain the previously calculated Level 1 (Static Budget) Variances. \end{tabular} \\ \hline 3 & \begin{tabular}{l} Volume and Flexible Budget Variances (Level 2) - Once calculated, students must \\ indicate in the adjacent column, whether the variances calculated are regarded as \\ Favorable or Unfavorable by entering an "F" or "U" as appropriate. \end{tabular} \\ \hline 4 & \begin{tabular}{l} Provide Selected Variance Explanations - For the variances indicated below the \\ income statement information, students must hypothesize and provide a possible \\ explanation for why or how the slected variance came about in context with its \\ favorability (e.g. "The favorable volume variance for Direct Material is the result of \\ the organization having sold fewer units than it had originally planned.") \end{tabular} \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ VERITAS Fountain Pens, LLC } \\ \hline \multicolumn{5}{|c|}{ Income Statement (Static Budget and Actual Results) } \\ \hline \multicolumn{5}{|c|}{ For the year ended December 31, 2022} \\ \hline & / unit & Static Budget & & Actuals \\ \hline units & & 25,740 & & 29,858 \\ \hline Sales & $50.00 & 1,287,000 & $ & 1,055,340 \\ \hline \multicolumn{5}{|l|}{ Variable Costs } \\ \hline \multicolumn{5}{|l|}{ Cost of Goods Sold } \\ \hline Direct Material & 4.87 & 125,354 & & 145,410 \\ \hline Direct Labor Wages & 16.26 & 418,532 & & 468,756 \\ \hline Indirect Cost Allocation & 11.38 & 292,921 & & 246,053 \\ \hline Commissions Expense 3% & 1.50 & 38,610 & & 31,660 \\ \hline Total Variable Costs & 34.01 & 875,417 & & 891,879 \\ \hline Contribution Margin & 15.99 & 411,583 & & 163,461 \\ \hline \multicolumn{5}{|l|}{ Fixed Costs } \\ \hline Advertising Expense & & 64,160 & & 57,744 \\ \hline Insurance Expense & & 22,000 & & 22,440 \\ \hline Selling \& Admin. Expense & & 212,640 & & 227,524 \\ \hline Bad Debt Expense & & 25,760 & & 22,668 \\ \hline Depreciation Expense & & 36,000 & & 35,280 \\ \hline Total Fixed Costs & & 360,560 & & 365,656 \\ \hline Operating Income & & 51,023 & $ & (202,195) \\ \hline \end{tabular}