Crafts Inc., is a manufacturer of furniture.
The company has 2 responsibility centers: Production and Selling and Distribution.
Production and administration are cost centers while Selling and Distribution is a profit center.
Presented below are the budgeted and actual contribution income statement for October along with applicable unit information.
Budgeted unit information:
Units	900
Sale price per unit	$245
Direct material per unit	$48
Direct labor per unit	$18
Variable manufacturing overhead per unit	$16
Variable selling and distribution per unit	$45
Actual Units:	850
	Craft Inc.
	Budgeted Contribution Income Statement
	For Month of October
Sales				$ 220,500
Less Variable costs
Variable cost of goods sold:
	Direct materials	$ 43,200
	Direct labor	16,200
	Manufacturing overhead	14,400	$ 73,800
Selling and distribution			40,500	(114,300)
Contribution Margin				106,200
Less Fixed Costs:
	Manufacturing overhead		40,000
	Selling and Distribution		30,000	(70,000)
Net Income				36,200
	Craft Inc.
	Actual Contribution Income Statement
	For Month of October
Sales				$ 230,000
Less Variable costs
Variable cost of goods sold:
	Direct materials	$ 46,000
	Direct labor	25,000
	Manufacturing overhead	20,000	$ 91,000
Selling and distribution			39,000	(130,000)
Contribution Margin				100,000
Less Fixed Costs:
	Manufacturing overhead		38,000
	Selling and Distribution		40,000	(78,000)
Net Income(Loss)				22,000
Required:
3. Determine the revenue variance. 4. Determine the sales price variance. 5. Determine the sales volume variance.