Problem 6 - 30 ( Part Level Submission ) Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk . She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income , confirming her decision to push the workers to get those last 270 cases off the production line before the end of the month . But as she glanced over the rest of numbers , Lexi couldn't help but wonder if there were errors in some of the line items . She was puzzled how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs . Yet the report , shown below , showed a different story