1. Prepare a flexible budget and a variance analysis. (Please explain how to derive the results)

REAL FLEXIBLE VARIATION Units Sales 14,000 686,000 14,000 672,000 Direct Materials Direct Labor Indirect Labor Idle Time Clean up time Miscellaneous Supplies 108.000 288.000 57.600 14.400 10.800 5.200 14,000 49 48 0289 Variable Manufacturing costs Variable Shipping Costs 28.800 1.6 Direct Materials Direct Labor Indirect Labor Idle Time Clean up time Miscellaneous Supplies 85,400 246,000 44,400 14,200 10,000 4,000 -85,400 -246,000 44,400 -14,200 -10,000 4,000 Total Variable Manufacturing Costs 404,000 404,000 Variable Shipping Costs 28,000 -28,000 Total Variable Costs 432,000 432,000 Contribution Margin 254,000 -254,000 NonVariable Manufacturing Costs #VALUE! Supervision Rent Depreciation Other 58,800 20,000 60,000 10,400 #VALUE! #VALUE! Total Non Variable Manuf. Costs 149,200 -149,200 Selling and Administrative Costs 112,000 #VALUE! Total non variable and programmed costs 261,200 #VALUE! Operating Income (Loss) -7,200 #VALUE