Following is the company's June contribution report, comparing budgeted and actual results for its tie-dyed t-shirt. Actual Master Budget No. of Tie Dyed T-Shirts Sold 217,000 Shirts 215,000 Shirts Sales Revenue $5,989,200 $5,934,000 Direct Materials: White T-Shirts 592,410 591,250 Rubber Bands 22,785 17,200 Plastic Drying Bags 39,060 32,250 Direct Labor 1,085,000 774,000 Variable Overhead 781,200 696,600 Total Variable Costs $ 2,520,455 $ 2,111,300 Contribution Margin $ 3,468,745 $3,822,700 Standard costs for one tie dyed t-shirt are as follows: White T-Shirts 1.00 shirt at $2.75 per shirt Rubber Bands 4.00 bands at $0.02 per band Plastic Drying Bags 1.00 bags at $0.15 per bag Direct Labor 18 minutes per shirt at $12.00 per hour Variable Overhead 18 minutes per shirt at $0.18 per direct labor minute Variable Overhead is applied on the basis of direct labor hours Accounting and production records indicate that the company purchased and used the following total quantities during the month, to produce 217,000 tie dyed t-shirts: White T-Shirts 227,850 white t-shirts Rubber Bands 1,519,000 bands Plastic Drying Bags 195,300 bags Direct Labor 4,340,000 minutes Contribution Report (typed in provided template) Performance Evaluation Report (typed) JAYHAWK TEES LLC CONTRIBUTION REPORT 3 Flexible Budget Variance Actual Flexible Budget 4 5 Amount FIU 6 No. of Tie Dyed T-Shirts Sold 215,000 217,000 217,000 5,989,200.00 7 Sales Revenue $ Direct Materials White T-Shirts 9 $ $ $ 10 Rubber Bands Plastic Drying Bags Direct Labor 592,410.00 22,785.00 39,060.00 1,085,000.00 781,200.00 626,587.50 7,595.00 29,295.00 11 227,850.00 1,519,000.00 195,300.00 4,340,000.00 12 13 Vanable Overhead 14 $ Total Vanable Costs Contribution Margin 2,520,455.00 3,468,745.00 $ 16