Please answer questions in attachment.

Barnes Entertainment Corporation prepared a master budget for the month of November that was

based on sales of 157,000 board games. The budgeted income statement for the period is as follows.

Sales Revenue $2,512,000

Variable expenses

Direct materials $769,300

Direct labor 298,300

Variable overhead 518,100

Total variable expenses 1,585,700

Contribution margin 926,300

Fixed overhead 257,400

Fixed selling and administrative expenses 503,900

Total fixed expenses 761,300

Operating income $165,000

During November, Barnes produced and sold 197,700 board games. Actual results for the month are as

follows.

Sales Revenue $3,152,000

Variable expenses

Direct materials $956,530

Direct labor 389,430

Variable overhead 663,110

Total variable expenses 2,009,070

Contribution margin 1,142,930

Fixed overhead 277,400

Fixed selling and administrative expenses 503,900

Total fixed expenses 781,300

Operating income $361,630

*(a-b)

(a) Prepare a flexible budget for November. (Round unit answers to 2 decimal places, e.g. 5.25 & all

places, e.g. 125.)

Unit 197,700 games

$ $

:

1 of 3

Attempts: 0 of 2 used

$

:

$

(b) Calculate Barnes?s static budget variance for November. (Round answers to 0 decimal places, e.g.

as positive values. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Actual Results

Static Budget

Variance

Unit Sales

$ $

:

:

$ $

*(d)

The parts of this question must be completed in order. This part will be available when you complete

the part above.

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