Vaughn Entertainment Corporation prepared a master budget for the month of November that was based on sales of 199,300 board games. The budgeted income statement for the period is as follows. $2,989,500 $936,710 358,740 577,970 Sales Revenue Variable expenses Direct materials Direct labor Variable overhead Total variable expenses Contribution margin Fixed overhead Fixed selling and administrative expenses Total fixed expenses Operating income 1,873.420 1,116,080 232,000 442,000 674.000 $442,080 During November, Vaughn produced and sold 153,600 board games. Actual results for the month are as follows. $2,202,000 Sales Revenue Variable expenses Direct materials Direct labor Variable overhead Total variable expenses $709,320 261,580 434,540 1,405,440 1,073,440 1,116,080 Total variable experises Contribution margin Fixed overhead Fixed selling and administrative expenses Total fixed expenses Operating income 232,000 442,000 674,000 $442,080 During November, Vaughn produced and sold 153,600 board games. Actual results for the month are as follows. $2,202,000 $709,320 261,580 434,540 Sales Revenue Variable expenses Direct materials Direct labor Variable overhead Total variable expenses Contribution margin Fixed overhead Fixed selling and administrative expenses Total fixed expenses Operating income 1,405,440 796,560 219,000 457,000 676,000 $120,560 (a) Prepare a flexible budget for November. (Round unit answers to 2 decimal places, eg. 5.25 & all other answers to O decimal place eg. 125.) Unit 153,600 games Sales revenue $ 69 2304000 Less Variable expenses Direct material 4.70 721920 Direct labor i i 1.80 276480 Variable overhead 2.90 445440 Total variable expenses 9.40 1443840 Contribution margin 5.60 860160 Less Fixed expenses Overhead 232000 Selling and administrative 442000 Total fixed expenses 674000 Operating income 186160 (b) Calculate Vaughn's static budget variance for November. (Round answers to 0 decimal places, eg. 125. Enter all variance amounts as positive values. If variance is zero, select "Not Applicable" and enter O for the amounts.) Actual Results Static Budget Variance Unit Sales 153600 45700 Unfav Sales revenue $ 2202000 787500 Unfay Less V Variable expenses v Direct material 709320 1 227390 Favor Direct labor 261580 97160 Favor i i Variable overhead 434540 143430 Favor Total variable expenses 1405440 467980 Favor Contribution margin 796560 319520 Unfav Less Fixed expenses Overhead 219000 i 13000 Favor Selling and administrative v 457000 Unfav Total fixed expenses 676000 i 2000 Unfay Operating income $ 120560 321520 i Unfav ULOUILS Actual Results Static Budget Variance Static Budget 153600 45700 Unfavorable 199300 2202000 $ 787500 Unfavorable 2989500 709320 227390 Favorable TA