Quindo Table Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $55 per table. Operating income is anticipated to be $220,000. Budgeted variable costs are $35 per unit, while fixed costs total $660,000.

Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000.

Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.

Quindo Table Company

Variance Analysis

	Actual Results	Flexible Variances	Flexible Budget	Volume Variances	Sales-Static
Units sold	A)	B)	C)	D)	E)
Sales	F)	G)	H)	I)	J)
Variable costs	K)	L)	M)	N)	O)
Contribution margin	P)	Q)	R)	S)	T)
Fixed costs	U)	V)	660,000	0	660,000
Operating income	W)	X)	Y)	Z)	$220,000