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

Required:

Prepare a 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. ("Under Budget" should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars.)

SNELLS Comparison of Budgeted and Actual Revenue and Expenses For the Year Ended December 31 Over (or Under) Budget Flexible Actual Budget Net sales Cost of goods sold Gross profit on sales Operating expenses: Selling and promotion Building occupancy Buying Delivery Credit and collection Administrative $10,500,000 $10,500,000 (120,000) 6,300,000 6,180,000 $ 120,000 $ 4,200,000 $ 4,320,000 $1,020,000 (51,000) 1,071,000 417,000 420,000 3,000 570,000 594,000 24,000 216,000 (33,000) 183,000 90,000 (3,000) 93,000 562,500 564,000 1,500 Total operating expenses Operating income $ (58,500) $ 2,929,500 $ 2,871,000 $1,270,500 $ 1,449,000 178,500