Master (Static) Budget Variance and Its Components As the new accountant for Cohen & Co., you have been asked to provide a succinct analysis of financial performance for the year just ended. You...

Master (Static) Budget Variance and Its Components As the new accountant for Cohen & Co., you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to the company’s sole product:

Required 1. What was the actual operating income for the period? Show calculations; round your answer to the nearest whole dollar. 2. What was the company’s master (static) budget operating income for the period? Show calculations, and round your answer to the nearest whole dollar. 3. (a) What was the total master (static) budget variance, in terms of operating income, for the period (rounded to nearest whole dollar)? (b) Is this variance favorable (F) or unfavorable (U)? Why? (Note: The total master (static) budget variance is also referred to as the total operating income variance for the period.) 4. The total master (static) budget variance for a period can be decomposed into a total flexible-budget variance and a sales volume variance. (a) What was (to the nearest whole dollar) the total flexiblebudget variance for the period? (b) Was this variance favorable (F) or unfavorable (U)? (c) What was the sales volume variance (to the nearest whole dollar) for the period? (d) Was this variance favorable (F) or unfavorable (U)?  5. Define the meaning of the total flexible-budget variance and the sales volume variance.