Performance Report Year Ended December 31, 2017 Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget 91,000 Units sold 105,000 Revenues (sales) $ 672,000 440,000 $ Variable costs 373,100 204,750 Contribution margin 232,000 148,650 Fixed costs 168,350 85,000 GA Operating income 83,350 $ 83,350 The Putnam Company produces engine parts for car manufacturers. A new accountant intem et Putnarn has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2017. The A at . following table of (Click the loon to view the data) Read the requirements Requirement 1. Calculate all the required variances. (If your work is accumte, you will find that the total static-budget varlance is $0.) Begin with the flexible budget columns, then the sales volume variance column. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do no select a label. Round your answers to the nearest whole dollar) Flexible-Budget Variance - Actual Results 105,000 Requirements Flexible Budget 105,000 0 $ 241,500 $ 430 500 Units sold Revenues (sales) Variable costs Contribution margin 672,000 $ 440,000 204800 235200 36700 F 232 000 148,650 195300 BS ODO 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here? Fixed costs 63,650U $ 83 350 -26950 110300 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. ? 3 parts remaining Clear All Check