Exercise $4-1(25$ Points$)$:

Zen Technologies is a leading manufacturer of advanced LED lighting systems in Toronto, known for their cutting$-$edge technology and premium quality.

The company provides the following information related to its Quarter $3$:

$\backslash$table$[[,,$Results,,Budget$],[$Number of units produced and sold,,$670,000,,660,000],[$Price per unit,$$,22\mathrm{.}00,$$$,20\mathrm{.}00],[$Direct materials cost per unit produced,$$,6\mathrm{.}50,$$$,6\mathrm{.}00],[$Direct labour cost per unit produced,$$,4\mathrm{.}80,$$$,5\mathrm{.}00],[$Variable MOH rate per unit produced,$$,1\mathrm{.}20,$$$,1\mathrm{.}50],[$Variable selling & administrative cost per unit sold,$$,2\mathrm{.}50,$$$,2\mathrm{.}00],[$Quarterly fixed manufacturing overheads,$$,310,000,$$$,330,750],[$Quarterly fixed selling & administrative cost,$$,400,000,$$$,396,000]]$

Required:

Prepare the contribution margin income statements for the actual results, flexible budget, and Compute all variances then compute the static budget variance and the flexible budget variance Indicate if the variances are favourable or unfavourable.