Required:

1. Using text Exhibit 14.4 as a guide, complete the missing parts of the following profit report for December.

2. Based on your completed profit report, determine the dollar amount, and label (Favorable or Unfavorable) each of the following variances for December:

a. Total master (static) budget variance (also referred to as the total operating income variance for the period).

b. Total flexible-budget variance.

c. Sales volume variance, in terms of operating income.

d. Sales volume variance, in terms of contribution margin.

e. Selling price variance.

omplete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Using text Exhibit 14.4 as a guide, complete the missing parts of the following profit report for December. (If a variance has no amount, select "None" in the corresponding dropdown cell.)

	Actual results	Flexible-budget variances		Flexible budget	Sales volume variances		Master (static) budget
Unit sales	116,000	0	None	116,000	0	Favorable	100,000
Sales	$580,000	$0	None	$580,000			$500,000
Variable costs	440,800						300,000
Contribution margin	$139,200						$200,000
Fixed costs	80,000						91,000
Operating income	$59,200						$109,000

• Required 1
• Required 2

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  a.	Total master (static) budget variance
  b.	Total flexible-budget variance
  c.	Sales volume variance, in terms of operating income
  d.	Sales volume variance, in terms of contribution margin
  e.	Selling price variance