Master Budget 17,500 $259,000 Actual Amounts 17,000 $255,000 D Variance 500 4,000 1 2 Units 3 Sales Variable costs Direct labor 6 Direct Material Variable Manufacturing 8 Total variable costs 9 Contribution Margin 10 Fixed costs u Manufacturing 12 Selling & Admin 13 Total fixed costs 14 Operating Revenue 15 $45,000 $25,000 $125,000 $195,000 $64,000 $38,000 $25,500 $129,500 $193,000 $62,000 7,000 500 4,500 2,000 2,000 $20,250 $13,000 $33,250 $30,750 $20,250 $13,000 $33,250 $28,750 2,000 16 Budget Formula Flexible Budget Actual Variance av/Unfa % Diff Investigate? 18 Units 19 Sales 20 Variable costs 21 Direct labor 22 Direct Material 23 Variable Manufacturing 24 Total variable costs 25 Contribution Margin 26 Fixed costs 27 Manufacturing 28 Selling & Admin 29 Total fixed costs 30 Operating Income