Exercise 16-21 Flexible Budgeting (LO 16-2)

The master budget at Western Company last period called for sales of 240,000 units at $8.10 each. The costs were estimated to be $4.00 variable per unit and $270,000 fixed. During the period, actual production and actual sales were 245,000 units. The selling price was $8.20 per unit. Variable costs were $4.75 per unit. Actual fixed costs were $270,000.

Required:

Prepare a flexible budget for Western.

Sales Revenue
Variable Cost
Contribution Margin
Fixed Cost	$270,000
Operating Profit