Master Budget 17,500 $259,000 Actual Amounts 17,000 S255,000 Variance 500 4,000 Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Revenue $45,000 $25,000 $125,000 $195,000 $64,000 $38,000 $25,500 $129,500 S193,000 $62,000 7,000 500 4,500 2,000 2,000 $20,250 $13,000 $33,250 $30,750 $20,250 $13,000 S33,250 $28,750 2,000 Budget Formula Flexible Budget Actual Variance Fav/Unfav % Diff Investigate? Units Sales Variable costs Direct labor Direct Material Variable Manufacturing Total variable costs Contribution Margin Fixed costs Manufacturing Selling & Admin Total fixed costs Operating Income