Watarway Company's actual results reveal that it was profitable in the sale of its star product: a high$-$send spot$-$cleaningvacuum for upholstery. But it was not nearly as profitable as managamant had hoped. Watenvay's actual income statemant and master budgat income statement ars as follows. In arder to kesp the focus on product coats, SGSA coats ware omitted.

$\backslash$table$[[,$Actual Results,Flexible Budget,Master Budzet$],[$Units sold,$10,000,,12,000],[$Revenues$,$$$1,660,000,,$$$2,098,000],[$Variable costs$],[$DM$,562,400,,649,000],[$DL$,160,000,,172,$god$],[$Variable$-$MOH,$123,300,,134,400],[$Contribution margin,$814,300,,1,132,800],[$Fosed$-$MOH,$279,000,,269,900],[$Operating income,$$535,300,,$$$864,000]]$

Here are the company's standard cost cards for each product coat.

$\backslash$table$[[$Input$,$Quantity Standards,Price Standards,$\backslash$table$[[$Standard Cost$],[$per Unit$]]],[$DM$,3\mathrm{.}0$ yards,$$18\mathrm{.}00$ peryard,$$54\mathrm{.}00],[$DL$,1\mathrm{.}6$ hours,$$9\mathrm{.}00$ perhaur,$$14,40],[$Variable$-$MOH,$1\mathrm{.}6$ haurs,$$7\mathrm{.}00$ perhaur,$$11\mathrm{.}20],[$Foosd$-$MOH,$1\mathrm{.}6$ hours,$$1400$ perhaur,$$22\mathrm{.}40]]$

$($a$)$

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Prepare a flexible budget for Waterway Company so manasement can evaluate the company's actual performance uaing a more appropriate benchmark

$\backslash$table$[[,$Flexible Budret$],[$Units sold,,$10,000],[$Revanues$,$$$,1,740,000],[$Variable coats$],[$DM$,,540,000],[$DL$,,144,000],[$Variable$-$MOH,,$112000],[$Contribution marzin,,$944,000],[$Fixad$-$MOH$],[$Operating income,$$,720,000]]$

Attempts: $1$ of $1$ used

$($b$)$

Determine Waterwa's flexible budpet variances and sales activity variances