Use the information provided in Exercise 8-1A.

a. Determine the sales and variable cost volume variances.
b. Classify the variances as favorable (F) or unfavorable (U).
c. Comment on the usefulness of the variances with respect to performance evaluation and identify the member of the management team most likely to be responsible for these variances.
d. Determine the amount of fixed cost that will appear in the flexible budget.
e. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity. Assuming Cherokee uses information in the master budget to price the company's product, comment on how the fixed cost volume variance could affect the company's profitability. Round computations to two decimal points.

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Item Budget Actual Varlance For U $400 $360,000 $390 $390.000 Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materlals usage 192,500 $180,000 137,500 $140,000 $89,000 900 units $29,350 $48,500 11000 $12,500 $20,000 $90,000 950 units $30,000 $48,000 Wages at 4,000 hours ch and development expense Selling and adminlstrative expenses $24,500