Super Toys Corporation manufactures small toy sets for children at Christmas time. The company currently manufactures and sells three models: Standard, Comfortable, and Deluxe. For the 2021 financial year, the budgeted average selling price per set was: $30 for the standard set, $45 for the comfortable set, and $60 for the deluxe set. The standard material cost per set consists of four-square feet of plastic at a purchased price of $3 per square foot. The standard labor cost per set consists of 1.2 labor hour at a rate of $10 per labor hour. The fixed costs for both manufacturing and selling & administrative activities were budgeted at $527 000. For the 2021 financial year, the budgeted sales were 30 000 standard sets, 18 000 comfortable sets, and 12 000 deluxe sets. Super Toys Corporation estimated to obtain 4% of the industry volume for the 2021 financial year. The Company's actual results for the 2021 financial year were the following: SALES Standard 42 250 sets $1,394,250 Comfortable 13 000 sets $572,000 Deluxe 9 750 sets $604,500 $2,570,750 VARIABLE COSTS Material Labor Fixed costs Operating income 277,000 square feet 102,000 labour hours $836,000 $969.000 $524,000 $241.750 The actual industry volume for the financial year 2021 was 1,400,000 toy sets. Required: You must provide all the detailed supporting calculations. a. Reconcile Super Toys Corporation's budgeted operating income in 2021 to the actual operating income in 2021 by computing all meaningful variances. (22 marks) b. Based on your analysis of the 2021 results, explain what caused the difference between the actual and budgeted income for 2021, and why? (5 marks) 3