The Alpha Company manufactures designer jewelry for jewelry stores. A new accountant intern at Alpha Company has accidentally deleted the calculations on the company’s variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data.

1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is \($0.)\)
2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here?

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1 2 Home Insert Page Layout Formulas Data Renew View A B E F Performance Report, Year Ended December 31, 2017 3 Actual Results Flexible-Budget Variances Flexible Budget Sales-Volume Variances Static Budget 4 Units sold 150,000 140,000 5 Revenues (sales) $975,000 $630,000 6 Variable costs 675,000 350,000 7 Contribution margin 300,000 280,000 8 Fixed costs 150,000 130,000 9 Operating income $150,000 $150,000