Computing master budget given actual data. Lost Art Enterprises lost the only copy of the master budget for this period. Management wants to evaluate this period's performance but believes it needs the master budget to do so. Actual results for the period follow:

The company planned on 10,000 billable hours at a price of $50 each. At that volume, the contribution margin would have been $350,000. Fixed costs were estimated to be $272,000 for the period. Management notes, "We budget an operating profit of a$.7 . 8C0o n spterru c bti ll tahbel e m ahsotuerr. " budget for the period.

b. Prepare a profit variance report comparing actual sales to the flexible budget and master budget.

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Sales Volume Sales Revenue. Variable Costs.. Contribution Margin Fixed Costs... Operating Profit. 12.000 Billable Hours $672.000 (208,600) $463,400 (318,200) $145,200