Finance Management Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget and actual results for September 2014 included these data:

The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results.

Requirements:

1.	Prepare a static-budget-based variance analysis of the September performance.
2.	Prepare a flexible-budget-based variance analysis of the September performance.
3.	Why might Finance Management find the flexible-budget-based variance analysis more informative than the static-budget-based variance analysis? Explain your answer.

Requirement 1. Prepare a static-budget-based variance analysis of the September performance.

Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable. (Enter an operating loss with a minus sign or parentheses.)

	Actual
	Results
Units sold
Revenues
Variable costs
Contribution margin
Fixed costs
Operating income (loss)

Data Table 1 The budgeted amounts for September 2014 were Number of checkbooks Selling price per book Variable cost per book Fixed costs for the month 12,000 21 25,000 The actual results for September 2014 were as follows: Number of checkbooks produced and sold Average selling price per book Variable cost per book Fixed costs for the month 9,000 $ 129,000