Prepare a Flexible Budget Conduct Variance Analysis Master Budget February per Unit Actual February per Unit Flex Budget February Variances (flex. vs. actual) Total per Unit Sales : per Unit Units 42,500 $ 9.50 9.85 (B) (F) 35,000 $ 344,750 Total Sales Revenue $ 403,750 $ (A) Verify that the net income is the same as the Op Budget (B) Input the flex budget sales units and the per unit price (C) Input the flex budget production cost per unit and calculate the total flex production costs. (D) Input the flex budget variable selling costs per unit (E) Input the flex budget fixed selling and administration costs (F) Calculate the variances between the actual and flex budget (G) Input the spending variance (H) Calculate the volume variance using the budgetted contribution margin $ 5.45 $ Variable Costs: Production Selling Total Variable Costs 110,500 $ 4,038 2.60 0.10 190,750 $ 3,850 (c) (D) (F) (F) 0.11 0 $ 114,538 $ 2.70 $ 194,600 $ 5.56 $ $ $ $ Contribution Margin $ 289,213 S 6.81 $ 150,150 $ 4.29 $ $ $ $ Fixed Costs: Selling Administration Total Fixed Costs 52,500 63,000 60,000 58,500 52,500 (E) 63,000 (E) 115,500 (F) (F) 115,500 118,500 Net Income $ 173,713 (A) $ 31,650 $ (115,500) $ (F) Master Budget vs. Actual Net Income Variance What is the volume variance What is the spending rate variance $ $ $ (142,063) (G) (H) 0