Vet Health produces a generic medication used to treat cats with feline diabetes. The liquid medication is sold in 100 ml vials. Vet Health employs a team of sales representatives who are paid varying amounts of commission.

Given the narrow margins in the generic veterinary drugs industry, Vet Health relies on tight standards and cost controls to manage its operations. Vet Health has the following budgeted standards for the month of August 2020:

Average selling price per vial	$ 8.30
Total direct materials cost per vial	$ 3.60
Direct manufacturing labor cost per hour	$ 15.00
Average labor productivity rate (vials per hour)	100
Sales commission cost per vial	$ 0.72
Fixed administrative and manufacturing overhead	$990,000

Vet Health budgeted sales of 700,000 vials for August. At the end of the month, the controller revealed that actual results for August had deviated from the budget in several ways:

• Unit sales and production were 90% of plan.
• Actual average selling price decreased to $8.20.
• Productivity dropped to 90 vials per hour.
• Actual direct manufacturing labor cost was $15.20 per hour.
• Actual total direct material cost per unit increased to $3.90.
• Actual sales commissions were $0.70 per vial.
• Fixed overhead costs were $110,000 above budget.

Calculate the following amounts for Vet Health for August 2020:

23. Static-budget and actual operating income
24. Static-budget variance for operating income
25. Flexible-budget operating income
26. Flexible-budget variance for operating income
27. Sales-volume variance for operating income
28. Price and efficiency variances for direct manufacturing labor
29. Flexible-budget variance for direct manufacturing labor
30. Comment on the analysis and variances.