Units Sales Variable costs Contribution margin Comparison of Actual and Budgeted Operating Income SCHMIDT MACHINERY COMPANY Analysis of Operating Income (1) For October 2022 Actual Operating Income 780 (2) Master Budget (3) Variances 1,000 220 U* $ 639,600 100% $ 800,000 100% $ 160,400 U 350,950 55 450,000 56 99,050 F** $ 288,650 45% $ 350,000 44% $ 61,350 U Fixed costs 160,650 *** 25 150,000+ 19 10,650 U Operating income $ 128,000 20% $ 200,000 25% $ 72,000 U *U denotes an unfavorable effect on operating income. **F denotes a favorable effect on operating income. ***Actual fixed factory overhead cost $130,650; actual fixed selling and administrative costs = $30,000. *Budgeted fixed factory overhead cost $120,000; budgeted fixed selling and administrative costs $30,000.