Return to Help I System Announcements line before the end of the month. over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be But as she glanced 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. Budget and sold 10,250 10,000 $1,947,500 $1,870,000 $77,500 Favorable Less variable expenses Direct material 561,000 11,000 Unfavorable 7,650 Unfavorable Direct labor 285,012 93,130 41,740 1,248,532 267,650 260,000 280,000 90,000 40,000 1,220,000 650,000 Variable selling expenses 3,130 1,740 Unfavorable 28,532 Unfavorable 48,968 Favorable Contribution margin expenses 111,000 69,500 129,800 310,300 110,000 70,000 130,000 310,000 1,000 Unfavorable (500 Favorable (200 Favorable) Fixed selling expenses Operating income e variances on the operating costs. Can you Lexi picked up the phone and called Irvin. "Irvin, I don't get it. We beat the budgeted operating get back to you,irvin replied. help me understand what's going on?" "Let me look into it and Irvin gathered the following additional information about the month's performance . Direct materials purchased: 102,000 pounds at a total of $561,000 . Direct materials used: 102,000 pounds