Question 4 - Variance Analysis (5 marks) Required: The owners can see that the company sold a different amount of units than budgeted. They have asked you to determine the flexible budget amounts and calculate the variances when comparing the flexible budget to the actual results (S marks) Flexible Budget Report Static Flexible Variance (show Budget Budget Actual as positive Unfavorable Amount Amount Results amount) (0) Sales in Units 4,500 120 4,200 or Sales $ 540,000 500,000 1 Variable Cost 218,400 225,000 315.000 Contribution Margin 281,600 Fixed Cost 22,000 21,000 Net Operating Income 293,000 260,600