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.

Country Cookin' Inc.

Flexible Budget

Performance Report

For the Quarter Ended March 31

For the Quarter Ended March 31

Units Sold

Actual

Variance

Flexible

Variance

Master

26,000

28,000

30,000

Units Sold

27,000

Sales Revenue

$130

Sales

130

Direct Materials

88

Direct Materials

88

Direct Labor

3.75

Direct Labor

3.75

VOH

4.5

VOH

4.5

Total VC

V S&A

3.12

FOH

41000

Contribution Margin

Total Costs

FOH

41,000

Gross Profit

F S&A

50,923

50,923

50,923

50,923

Operating Income