Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14

Assume that in October 2019 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 940 units for $730 each. During this month, the company incurred $441,800 total variable costs and $180,900 total fixed costs. The master (static) budget data for the month are as given in Exhibit 14.1. Required: 1. Prepare a fiexible budget for the production and sale of 940 units 2. Compute for October 2019: a The sales volume variance, in terms of operating income. Indicate whether this variance was favorable (F) or unfavorable (U). b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable (F) or unfavorable (U). 3. Compute for October 2019 a The total flexible-budget (FB) variance Indicate whether this variance was favorable (F) or unfavorable (U). b. The total variable cost flexible-budget variance Indicate whether this variance was favorable (F) or unfavorable (U). c. The total fixed cost flexible-budget (FB) variance Indicate whether this variance was favorable (F) or unfavorable (U). d. The selling price variance. Indicate whether this variance was favorable (F) or unfavorable (U).
Required 1 Required 2 Required 3 Prepare a flexible budget for the production and sale of 940 units. Units sold Sales