Problem 2: (20 Points)

Nicholas Company manufacturers TVs. Some of the company's data was misplaced. Use the following information to replace the lost data:

Analysis	Actual Results	Flexible Variances	Flexible Budget	Sales- Volume Variances	Static Budget
Units Sold	112,500		112,500		103,125
Revenues	$42,080	$1,000 F	(A)	$1,400 U	(B)
Variable Costs	(C)	$200 U	$15,860	$2,340 F	$18,200
Fixed Costs	$8,280	$860 F	$9,140		$9,140
Operating Income	$17,740	(D)	$16,080	(E)	$15,140

Required:

a. What are the respective flexible-budget revenues (A)?

b. What are the static-budget revenues (B)?

c. What are the actual variable costs (C)?

d. What is the total flexible-budget variance (D)?

e. What is the total sales-volume variance (E)?

f. What is the total static-budget variance?

Solution (please show calculation & include if Favorable or Unfavorable):