The president of the company, Gregory Peters, has

come to you for help. Use the following data to answer

the following questions:

- Budgeted Actual

Sales volume: 12,000 10,000

Sales price: $24 per unit $22 per unit

Variable costs:

- Direct materials $5 per unit $6 per unit

- Direct Labor $2 per unit $2 per unit

- Variable overhead $7 per unit $8 per unit

- Variable Admin Exp $ 3 per unit $2 per unit

- Variable Selling $ 1 per unit $2 per unit

Fixed costs:

- Manufacturing Overhead $60,000 $70,000

- Admin Exp $20,000 $15,000

(1) Prepare contribution margin income statement for actual

results and static budget and calculate static budget variance.

(2) Prepare contribution margin income statement for actual

results, statistic budget and flexible budget and calculate

flexible budget variance and sales volume variance