1. Epsilon Technology

Scenario: Variance Analysis

Data: Epsilon Technology set the following budget and reported actual results for the year:

• Budgeted Sales Revenue: $1,000,000
• Actual Sales Revenue: $900,000
• Budgeted Variable Costs: $400,000
• Actual Variable Costs: $380,000
• Fixed Costs: $200,000

Requirements: Calculate the sales variance, variable cost variance, and fixed cost variance for Epsilon Technology. Analyze the variances and discuss their implications on financial performance. Recommend corrective actions based on the variance analysis to improve profitability.