Flexible Budget- Managerial Accounting

Master Budget Actual Variance 25,000 Units 400,000 425,000 Sales 4,800,000 5,100,000 30,000 Variable Costs: 217,000 Utilities 196,000 21,000 Maintenance 300,000 288,000 12,000 Supplies Variable Payroll 225,000 240,000 15,000 3,200,000 3,488,000 288,000 Total Variable Costs 4,218,000 3,936,000 282,000 Contribution Margin 864,000 882,000 18,000 Fixed Costs: 680,000 680,000 Management Salaries Rent 36,000 36,000 Depreciation 55,000 55,000 Total Fixed Costs 771,000 771,000 Operating Income 93,000 111,000 -18,000 Flexible Budget Flex Budget Rate Actual Variance % Var Fav/Unfav vestigate? Units Sales Variable Costs: Utilities Maintenance Supplies Variable Payroll Total Variable Costs Contribution Margin Contribution Margin Fixed Costs: Management Salaries Rent Depreciation Total Fixed Costs Operating Income Benchmark for Investigation=5%