sonnet inc has the following budgeted standards for the month 362568

Sonnet, Inc., has the following budgeted standards for the month of March 2011:

Average selling price per diskette $ 6.00

Total direct material cost per diskette $ 1.50

Direct manufacturing labor

Direct manufacturing labor cost per hour $ 12.00

Average labor productivity rate (diskettes per hour) 300

Direct marketing cost per unit $ 0.30

Fixed overhead $ 800,000

Sales of 1,500,000 units are budgeted for March. The expected total market for this product was 7,500,000 diskettes. Actual March results are as follows:

Unit sales and production totaled 95% of plan.

Actual average selling price increased to $6.10.

Productivity dropped to 250 diskettes per hour.

Actual direct manufacturing labor cost is $12.20 per hour.

Actual total direct material cost per unit increased to $1.60.

Actual direct marketing costs were $0.25 per unit.

Fixed overhead costs were $10,000 above plan.

Actual market size was 8,906,250 diskettes.

Required

Calculate the following:

1. Static budget and actual operating income

2. Static budget variance for operating income

3. Flexible budget operating income

4. Flexible budget variance for operating income

5. Sales volume variance for operating income

6. Market share and market size variances

7. Price and efficiency variances for direct manufacturing labor

8. Flexible budget variance for direct manufacturing labor