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 expensesVariable Expenses per sales dollars

Cost of merchandise sold$0.0$0.600

Selling & promotion expense$210,0000.082

Building & occupancy expense186,0000.022

Buying expense150,0000.041

Delivery expense111,0000.008

Credit & collection expense72,0000.002

Administrative expense531,0000.003

Total$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

COGS6,180,000

Selling & promotion expense1,020,000

Building & occupancy expense420,000

Buying expense594,000

Delivery expense183,000

Collection & collection expense90,000

Administrative expense564,000

Required:

What is the schedule comparing the actual results with flexible budget amounts developed for the actual sales volume of $10,500,000. Use the cost-volume relationships given in the problem to compute the flexible budget amounts.

Flexible budget ActualOver/or Under budget

Operating expenses???

Total operating expenses???

Operating income???