Brodrick Company expects to produce 20,800 units for the year ending December 31. A flexible budget for 20,800 units of production reflects sales of $457,600; variable costs of $62,400; and fixed costs of $141,000.

Assume that actual sales for the year are $562,600 (27,800 units), actual variable costs for the year are $113,900, and actual fixed costs for the year are $132,000. Prepare a flexible budget performance report for the year.

BRODRICK COMPANY Flexible Budget Performance Report For Year Ended December 31 Favorable Unfavorable Flexible Budget Actual Results Variances Sales Variable expenses Contribution margin Fixed expenses Income from operations $ 562,600 113,900 448,700 132,000 0 S 316,700