Requirement 2 - What was the effect on the company's operating income of selling 200 units more than the static budget level of sales?Increase... or ...Decrease$____________

Requirement 3 - What was the company's static budget variance $ 3.________ F .... meaning that its operating income is higher than expected per the static budget.

Direct labor cost variance = (AC-SC) x AQ== 4.U

Direct materials efficiency variance = (AQ-SQ) x SC== 5.U