Snells is a retail department store. The following cost-volume relationships were used in developing a flexible budget for the company for the current year:

	Yearly Fixed Expenses			Variable Expenses per Sales Dollar
Cost of merchandise sold				$	0.600
Selling and promotion expense	$	210,000			0.082
Building occupancy expense		186,000			0.022
Buying expense		150,000			0.041
Delivery expense		111,000			0.008
Credit and collection expense		72,000			0.002
Administrative expense		531,000			0.003
Totals	$	1,260,000		$	0.758

Management expected to attain a sales level of $12 million during the current year. At the end of the year, the actual results achieved by the company were as follows:

Net sales	$	10,500,000
Cost of goods sold		6,180,000
Selling and promotion expense		1,020,000
Building occupancy expense		420,000
Buying expense		594,000
Delivery expense		183,000
Credit and collection expense		90,000
Administrative expense		564,000

Instructions

Prepare a schedule comparing the actual results with flexible budget amounts developed for the actual sales volume of $10,500,000. Organize your schedule as a partial multiple-step income statement, ending with operating income. Include separate columns for (1) flexible budget amounts, (2) actual amounts, and (3) any amount over (under) budget. Use the cost-volume relationships given in the problem to compute the flexible budget amounts. (Leave no cells blank - be certain to enter "0" wherever required.Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

SNELLS Comparison of Budgeted and Actual Revenue and Expenses For the Year Ended December 31, 20__
	Flexible Budget	Actual	Over (or Under) Budget
(Click to select) Net sales Cost of goods sold Operating expenses Credit sales Net purchase	$	$	$
(Click to select) Salaries expenses Direct material Cost of goods sold Net sales Dividends payable
(Click to select) Gross profit on purchase Gross profit on sales	$	$	$
Operating expenses:
(Click to select) Delivery Selling and promotion Building occupancy Buying Administrative	$	$	$
(Click to select) Buying Building occupancy Credit and collection Inventories Delivery
(Click to select) Accounts payble Buying Direct labor Delivery Adminstrative
(Click to select) Delivery Credit and collection Adminstrative Buying Building occupancy
(Click to select) Buying Credit and collection Adminstrative Administrative Building
(Click to select) Administrative Depreciation expenses Buying Accounts payble Building
Total operating expenses	$	$	$
Operating income	$	$	$