Monthly Budget Data
Selling price per Unit	$79 per unit
Raw Materials Cost	$27 per unit
Packaging Costs	$15 per unit
Electricity	$4 per unit
Waste and Other Costs	$6 per unit
Salary and Wages Costs	$560,000 per month
Fringe Benefits	50% of salaries
Rent Costs	$750,000 per month
Insurance Costs	$50,000 per month
Depreciation Costs	$370,000 per month

Actual Data		January	February
Production (Units)		245000	187000
Revenue		$ 19,345,000.00	$ 14,888,000.00
Raw Materials		$ 6,545,000.00	$ 4,996,000.00
Package Materials		$ 3,688,000.00	$ 2,897,000.00
Electricity		$ 975,000.00	$ 742,000.00
Waste and Other Costs		$ 1,537,000.00	$ 1,242,000.00
Wages		$ 560,000.00	$ 575,000.00
Fringe Benefits		$ 280,000.00	$ 287,500.00
Rent		$ 750,000.00	$ 750,000.00
Insurance		$ 52,000.00	$ 52,000.00
Depreciation		$ 370,000.00	$ 340,000.00

Prepare a flexible budget

1. Show the flexible budget for January in Contribution Margin Income Statement format.
2. Compare Januarys flexible budget to Januarys actual results. Specify which line items are favorable or unfavorable and how much.
3. For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for January. Provide potential explanations.
4. Show the flexible budget for February in Contribution Margin Income Statement format.
5. Compare Februarys flexible budget to Februarys actual results. Specify which line items are favorable or unfavorable and how much.
6. For Raw Material Costs and Packaging Costs, break out the Price and Volume Variances for February. Provide potential explanations for each one.