This analysis of flexible and static budget variance follows Exhibit 8-6 on page 316. You have to calculate the total variable and fixed flexible budget variances and sales activity variances. All of the green shaded boxes (11 of them) are to contain answers. All of the variances must be designated as favorable or unfavorable.

A	B - actual sales @ actual activity levels	C - flexible budget for actual sales activity	D - static budget
		90 (# of request x variable cost per request = budgeted variable cost	75 (static budget # of requests x variable cost per request = static budget expected variable cost
systemsconsulting		$500	???
variable cost	?????	$45,000	?????
plus	??? U or F (fleible budget variance= variable cost (B3) - $45,000)	??? F or U (sales variance ($45,000-D4)
systems consulting	$78,000 given	$65,000 given	$65,000 given
fixed costs
equals	? U or F ($78,000-$65,000)flexible budget activity vairance		F or U ???($65,000-$65,000)sales activity variance
systems consulting
total	$124,000 given		$102,500
			systems consulting
			TOTAL

316 PART 2 ACCOUNTING FOR PLANNING AND CONTROL Actual Results at Actual Activity Level Flexible-Budget Variances t Flexible Budget For Actual Sales Activity Sales-Activity Variances Static Budget* 7,000 Units Sales Variable costs Contribution margin Fixed costs Operating income 7,000 $217,000 152,600 64,400 70,000 9,000 $279,000 196,200 82,800 70,000 12,800 217,000 $62,000 U 43,600 F $18,400 U 5,670 U 58,730 70,300 $5,670 U 300 U $5,970 U Total flexible-budget variances 5,970 U $18,400 U Total sales activity variances 18,400 U (11.570) Total static t variances,$24,370 U J-Unfavorable. F = Favorable. Figures are from Exhibit 8-1 tFigures are shown in more detail in Exhibit 8-7 Figures are from the 7,000-unit column inEdibit 83. Exhibit 8-6 Dominion Company Summary of Performance for the Month Ended June 30, 20x1