Jake, Inc. Actual vs. Budget Income Statement For the month ended May 31, Year 2 Actual Budget Units sold 9,000 8,000 Revenue $ 756,000 $ 680,000 Variable costs Direct materials $(459,000) $(396,000) Direct labor (63,000) (60,000) Variable overhead (36,000) (32,000) Contribution margin $ 198,000 $ 192,000 Fixed costs (105,000) (105,500) Operating income $ 93,000 $ 86,500