The budgeted amounts for September 2017 were:

Number of checkbooks	19,000
Selling price per book	$21
Variable cost per book	$6
Fixed costs for the month	$140,000

The actual results for September 2017 were as follows:

Number of checkbooks produced and sold

16,200

Average selling price per book

$22

Variable cost per book

$5

Fixed costs for the month $145,100

The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results.

Personal AssistantPersonal Assistant develops its flexible budget on the basis of budgeted per-output-unit revenue and per-output-unit variable costs without detailed analysis of budgeted inputs.

1.

Prepare a static-budget-based variance analysis of the September performance.

2.

Prepare a flexible-budget-based variance analysis of the September performance.

3.

Why might Personal AssistantPersonal Assistant find the flexible-budget-based variance analysis more informative than the static-budget-based variance analysis? Explain your answer.

Requirement 1. Prepare a static-budget-based variance analysis of the September performance.

Begin with the actual results, then compute the static budget and the static-budget variances. Label each variance as favorable or unfavorable. (Enter an operating loss with a minus sign or parentheses.)

	Actual
	Results
Units sold
Revenues
Variable costs
Contribution margin
Fixed costs
Operating income (loss)