How to calculate a flexible budget for Direct material (Acrylic pile fabric)?

Actual $256,422

Master (Static) Budget $233,324

Master budget variance $23,098

Quantity allowed per unit 0.02381

Input price $35.00/Bolt

Standard Cost per unit $0.8333

One bolt of fabric is 10 yards long by 72 inches wide. Fabric for 42 finished units can be cut from one bolt

Berkshire Toy Company
Statement of Operating Income for the Year Ended June 30, 1998
		Actual	Master Budget	Master Budget Variance	F/ U	Flexible Budget	Flexible Budget Variance	F/ U
Units sold		325,556	280,000	45,556	F	325,556
Retail and catalog in units	174,965	8,573,285	11,662,000	3,088,715	U	8,573,285
Internet	105,429	4,428,018	-	(4,428,018)	F	4,428,018
Wholesale	45,162	1,445,184	1,344,000	(101,184)	F	1,445,184
Total units	325,556
Total Revenue		14,446,487	13,006,000	(1,440,487)	F	14,446,487
Variable Production Costs
Direct Materials
Acrylic pile fabric		256,422	233,324	(23,098)	U		256,422	F
10-mm acrylic eye		125,637	106,400	(19,237)	U		125,637	U
45-mm plastic joints		246,002	196,000	(50,002)	U		246,002	U
polyester fiber filling		450,856	365,400	(85,456)	U		450,856	U
woven label		16,422	14,000	(2,422)	U		16,422	U
designer box		69,488	67,200	(2,288)	U		69,488	F
accessories		66,013	33,600	(32,413)	U		66,013	U
Total Direct Labor Materials		1,230,840	1,015,924	(214,916)	U		1,230,840	U
Direct labor		3,668,305	2,688,000	(980,305)	U			U
variable overhead		1,725,665	1,046,304	(679,361)	U			U
Total variable production costs		6,624,810	4,750,228	(1,874,582)	U			U
Variable Selling expenses		1,859,594	1,218,280	(641,314)				U
Total variable expenses		8,484,404	5,968,508	(7,266,124)	U			U
Contribution Margin		5,962,083	7,037,492	1,075,409	U			U
Fixed costs
manufacturing overhead		658,897	661,920	3,023	F			F
selling expenses		5,023,192	4,463,000	(560,192)	U			U
administrative expenses		1,123,739	1,124,000	261	F			F
total fixed costs		6,805,828	6,248,920	(556,908)	U			U
Operating Income		(843,745)	788,572	1,632,317	U			F