Managers at Bramble Inc. were cautiously optimistic about receiving their bonuses at year end. Periodic communications from top leaders noted that 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 $9\%$ meant bonuses for everyone. The production crew had been managing costs but were not 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$)51,70044,000$

selling price $14\mathrm{.}5013\mathrm{.}90$

DM cost$/$ per unit $3\mathrm{.}403\mathrm{.}30$

DL cost per unit $1\mathrm{.}701\mathrm{.}75$

Variable MOH cost per unit $1\mathrm{.}601\mathrm{.}60$

Variable SG&A cost per unit $0\mathrm{.}400\mathrm{.}40$

Fixed MOH cost $204,000194,000$

Fixed SG&A cost $116,000111,600$

$($a$)-$ Prepare Bramble's flexible budget and actual income statement for the year

Per unit Actual Flexible Budget Per unit

Sales Volume $51,70051,700$

Sales $$14\mathrm{.}50$ $$\_\_\_\_\_\_\_\_\_\_$ $ $\_\_\_\_\_\_\_\_$ $$13\mathrm{.}90$

Variable Costs:

DM $$3\mathrm{.}40\_\_\_\_\_\_\_\_\_\_\_$ $$\_\_\_\_\_\_\_\_\_$ $$3\mathrm{.}30$

DL $1\mathrm{.}70\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_1\mathrm{.}75$

Variable MOH $1\mathrm{.}60\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_1\mathrm{.}60$

Variable SG&A $0\mathrm{.}40\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_0\mathrm{.}40$

Contribution Margin $7\mathrm{.}40\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_6\mathrm{.}85$

Fixed costs:

Fixed MOH $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Fixed SG&A $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Operating Income $ $\_\_\_\_\_\_\_\_\_\_\_\_\_$ $$\_\_\_\_\_\_\_\_\_\_\_$

$($b$)-$ Determine the flexible budget variance & sales price variance, noting the amount and sign for each.

$($d$1)$ Did the company hit the profit margin goal?

Actual Flexible Budget

Profit Margin $\_\_\_\_\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\_\_\_\%$

The company $\_\_\_\_\_\_\_\_\_($hit$,$ did not hit$)$ it's $9\%$ profit margin goal