The SHU Company president, 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	$50,000	$60,000
Admin Exp	$20,000	$15,000

(1) Prepare contribution margin income statement for actual results and static budget and calculate static budget variance.

(2)Calculate static budget variance and flexible budget variance and sales volume variance

How to formate the problem:

	Actual Results	Flexible budget	Static budget
	AUS x AUS (Actual Unit Sold * Actual Price)	AUS x BP (Actual Unit Sold* Budgeted Price)	BUS x BP (Budgeted Unit Sold* Budgeted Price)
Unit sold
Revenues
Less: Variable costs:
Direct materials
+Direct labor
+Variable MO
+ Variable Admin
+Variable Selling
=Total Variable costs
=Contribution Margin
-Fixed MO
- Fixed Admin
=Total Fixed Costs
=Operating income