Question 1 Concord Entertainment Corporation prepared a master budget for the month of November that was based on sales of 157,000 board games. The budgeted income statement for the period is as follows. Sales Revenue Variable expenses $2,512,000 $769,300 298,300 518,100 Direct materials Direct labor Variable overhead Total variable expenses Contribution margin 1,585,700 926,300 257,400 503,900 Fixed overhead Fixed selling and administrative expenses Total fixed expenses Operating income 761,300 $165,000 During November, Concord produced and sold 197,700 board games. Actual results for the month are as follows. Sales Revenue Variable expenses $3,152,000 Direct materials Direct labor Variable overhead $956,530 389,430 663,110 Total variable expenses 2,009,070 Contribution margin 1,142,930 277,400 503,900 Fixed overhead Fixed selling and administrative expenses Total fixed expenses 781,300 Operating income $361,630