Madeline Inc. Budgeted Income Statement For the Month Ending June 30, 2021 Sales Cost of goods sold Direct materials Direct labor Variable overhead Fixed overhed Gross profit Selling & admin. Expenses Variable selling & admin. expenses Fixed selling & admin. expenses Net income $ 700,000 1,000,000 50,000 10,000 250,000 20,000 $ 2,250,000 1,760,000 490,000 270,000 $ 220,000 On July 1, the company is reviewing its June results. Company management wants to evaluate their performance against what they had expected for the period. Prepare an Actual vs. Flexible Budget Variance Report for the June 30, 2021 given the actual results of 60,000 units sold; total direct materials $870,000; total direct labor $1,260,000; total variable overhead $72,000; total fixed overhead $5,000; total variable selling & admin. $330,000; and total fixed selling & admin. $10,000. Based on your variance report, do you think the company effectively controlled their costs? Why?

On July 1 , the company is reviewing its June results. Company management wants to evaluate their performance against what they had expected for the period. Prepare an Actual vs. Flexible Budget Variance Report for the June 30,2021 given the actual results of 60,000 units sold; total direct materials $870,000; total direct labor $1,260,000; total variable overhead $72,000; total fixed overhead $5,000; total variable selling \& admin. $330,000; and total fixed selling \& admin. $10,000. Based on your variance report, do you think the company effectively controlled their costs? Why