Based on the attached performance report for the quarter ended March 31, Year 2,

Prepare a flexible budget,

Buns Bakery Performance Report For the Quarter Ended March 31, Year 2 Actual Qt Actual $ Sales by Product Line Muffins Cookies Bread 41,400 $ 247,400 59,800 78,200 179,400 $1,006,000 36,000 $ 216,000 273,000 391,000 156,000 $880,000 311,950 446,650 52,000 68,000 Total Sales Less: Variable Costs Direct Materials 285,271 $45,643 14,355 20,015 10,122 29,620 31,057 17,944 22,281 44,861 9,386 $245,284 248,276 $37,241 12,013 17,419 8,810 25,779 27,030 15,617 19,521 39,044 Flour Margarine 55,214 100,075 202,451 23,696 41,410 179,445 14,954 59,815 19,555 48,053 87,097 176,196 20,623 36,040 156,173 13,014 52,058 17,019 Baking Packet Cocoa Shortening $210,984 Total Direct Materials Direct Labor 6,876 $ 57,107 128,255 104,392 $289,754 6,466 48,491 103,448 85,407 $237,346 14,666 14,271 12,931 13,140 Packaging Variable Factory Overhead Variable Selling and Administrative 65,072 76,335 10,626 384,002 Contribution Margin $357,798 Less: Fixed Costs Fixed Factory Overhead Fixed Selling and Administrative 166,000 208,960 9,042 160,000 200,800 (3,002) Operating Income / (Loss)