Abbys cost accountant prepared the following static budget based on expected activity of 4,000 units for the May 2018 accounting period

(A) If Abbys sales manager were to prepare a flexible budget for expected activity of 5,000 units, budgeted net income on this flexible budget would be?

(B) If Abby actually produced and sold 5,000 units at $18 each, what is the sales revenue activity/volume variance?

(C) If Abby actually incurred the following costs during May 2018

The flexible budget variance for:

i. Fixed costs: _____________

ii. Variable costs:_____________

Indicate favorable / unfavorable variances

4. Abby's cost accountant prepared the following static budget based on expected activity of 4,000 units for the May 2018 accounting period: Sales Revenue Variable Costs Contribution Margin Fixed Costs Net Income $60,000 32,000 $28,000 20,000 $8,000 a. If Abby's sales manager were to prepare a flexible budget for expected activity of 5,000 ncome on this flexible budget would be? b. If Abby actually produced and sold 5,000 units at S18 each, what is the sales revenue activity/volume variance? c. If Abby actually incurred the following costs during May 2018 Sales Revenue Variable Costs Contribution Margin $45,000 Fixed Costs Net Income $80,000 35,000 12,000 $33,000 The flexible budget variance i. Fixed costs i. Variable costs: for Indicate favorable/unfavorable variances for full credit