It is now the end of April and Country Cookin' management is ready to evaluate its first quarter performance. Prepare a flexible budget for sales levels of 26,000, 28,000, and 30,000 smokers. Next prepare a performance report based on the following actual results, flexible budget, and master budget prepared in week 4. Evaluate the first quarter performance of Country Cookin'.

	Country cookin inc
	Flexible budget
	For the quarter ending March 31
			Units sold
		26,000	28,000	30,000
sales revenue	$130
direct material	88
direct labor	3.75
VOH	4.50
Total VC
FOH	41000
Total costs
Gross profit

			country cookin inc
			Performance report
			For quarter ending March 31
		Actual	Variance		Flexible	Variance		Master
Units sold		27,000
sales	130
direct material	88
direct labor	3.75
VOH	4.50
V S&A	3.12
Contribution margin
FOH	41,000
F S&A	50,923	50,923			50,923			50,923
Operating Income