B F D E Variance Fav/Unfav Master Budget 110,000 $1,210,000 Actual Amounts 122,000 $1,342,000 132,000 F 1 2 Units 3 Sales 4 Variable Expenses: 5 Cost of Goods Sold 6 Wages Expense 7 Shipping Expense 8 Total Variable Expenses Contribution Margin 10 Fixed Expenses: 11 Insurance Expense 12 Property Tax Expense 13 Depreciation Expense 14 Total Fixed Expenses Net Income $660,000 $165,000 $93,500 $918,500 $291,500 $747,000 $215,940 $122,240 $1,085,180 $256,820 87,000 50,940 28,740 166,680 34,680 U U U U U 9 $12,000 $6,000 $8,000 $26,000 $265,500 $12,000 $6,000 $8,000 $26,000 $230,820 $34,680 U 15 Budget Formula Flexible Budget Actual Variance av/Unfa % Diff Investigate? 3 Units o Sales 1 Variable Expenses: 2 Cost of Goods Sold 3 Wages Expense -4 Shipping Expense 25 Total Variable Expenses 26 Contribution Margin 27 Fixed Expenses: Insurance Expense 29 Property Tax Expense 30 Depreciation Expense 31 Total Fixed Expenses 32 Net Income 28 33