I wanted to make sure I did this correctly. I need to do a Operating schedule.

Actual results @ actual activity level Flexible budget varainces Flexible Budget for actual activity Sales activity variances Static Budget

Units 20,120 20,120 -120 20,000

Sales 829,820 15,220 845,040 -5,040 840,000

Variable costs 743,000 -9,120 734,080 -4,080 730,000

Contribution Margin 86,620 24,340 110,960 -960 110,000

Fixed costs 57,850 -2,730 55,120 -120 55,000

Operating Income 28,770 27,070 55,840 -840 55,000

Flexible Budget varainace Total Sales Variances

27,070 -840

Total Static Budget variance

$26,230

With the information given below, I need help preparing a Operating Income Schedule for the month of July.

assume that the company produces a single product, sales are equal to production, and inventory levels are zero. Below are the standard costs per boot: Standard Quantity of Input allowed per unit of output Standard Price per unit of Input

Direct materials 3 pounds $3 per pound

Direct labor 1 hour $17 per hour

------------------------------------------------------------------------------------------------------------------------------------------------------

Below is the budgeted information for the month of July: Units produced and sold 20,000 Average selling price per unit $42 Direct materials based on the standards per unit Direct labor based on the standards per unit Variable factory overhead per unit $5 per direct labor hour Fixed factory overhead $50,000 Variable shipping costs per unit $3 Variable selling cost per unit $1 Fixed selling costs $15,000 Fixed administrative costs $20,000

Below are the actual results for the month of July: Units produced and sold 20,120 Actual sales revenue (see table below by customer) $829,820 Direct materials (65,000 lbs used) $191,750 Direct labor (19,500 actual hours) $333,450 Variable factory overhead $103,000 Fixed factory overhead $54,000 Variable shipping costs * $61,000 Variable selling cost $19,850 Fixed selling costs $17,000 Fixed administrative costs $21,000 *include variable shipping costs in cost of goods sold when preparing the income statement Actual sales units and selling prices by customer for July: Units Selling Price Customer A 12,000 $39 per unit Customer B 5,850 $44 per unit Customer C 2,270 $46 per unit

	Cost Formula		Budget		Actual result		Flexible Budget
Revenue	$42/unit		$ 8,40,000		$ 8,29,820		$ 8,45,040
Cost of goods sold:
Direct materials	$9 per unit	$ 1,80,000		$ 1,91,750		$ 1,81,080
direct labour	$17 per unit	$ 3,40,000		$ 3,33,450		$ 3,42,040
Variable factory overhead	$5 per unit	$ 1,00,000		$ 1,03,000		$ 1,00,600
Fixed factory overhead	$50000	$ 50,000		$ 54,000		$ 50,000
Variable shipping costs	$3 per unit	$ 60,000		$ 61,000		$ 60,360
Cost of goods sold:			$ 7,30,000		$ 7,43,200		$ 7,34,080
Gross Income			$ 1,10,000		$ 86,620		$ 1,10,960
Other operating expenses
Varable selling cost	$1 per unit	$ 20,000		$ 19,850		$ 20,120
Fixed selling costs	$15000	$ 15,000		$ 17,000		$ 15,000
Fixed Administrative costs	$20000	$ 20,000		$ 21,000		$ 20,000
Total Expenses			$ 55,000		$ 57,850		$ 55,120
Net Operating Profit (revenue - total expenses)			$ 55,000		$ 28,770		$ 55,840