Managers at Bonita, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 6% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Actual Master Budget Sales volume (units) 51,600 44,900 Selling price $14.50 $14.10 DM cost/unit $2.80 $2.70 DL cost/unit $1.80 $1.85 Variable-MOH cost/unit $1.60 $1.60 Variable SG&A cost/unit $0.60 $0.60 Fixed-MOH cost $217,000 $207,600 Fixed SG&A cost $139,000 $134,600 ritpart DUMILA TITAIDIT puugti anu actual mitunt Statement fun lit ytai. Per unit Sales volume Sales $14.50 $ Variable costs: Direct materials 2.80 Direct labor 1.80 Variable-MOH Variable SG&A 1.60 0.60 Contribution margin $7.70 Fixed costs: Fixed-MOH Fixed SG&A Operating income Actual 51,600 +A $ $ Flexible Budget 51,600 Per unit $14.10 2.70 1.85 1.60 0.60 $7.35 Determine the flexible budget variances and sales price variance, noting the amount and sign for each. Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A $ Operating income $ eTextbook and Media Flexible Budget Variance > > > > > > Favorable Unfavorable Neither Favorable nor Unfavorable