Top managers of Marshall Industries predicted 2018 sales of 14,800 units of its product at a unit price of $9.50. Actual sales for the year were 14,600 units at $12 each. Variable costs were budgeted at 2.00 per unit and actual variable cost were $2.10 per unit. Actual fixed cost of 48,000 exceeded budget it fixed cost by 4,000.

Prepare a flexible budget performance report for the year. First,complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally compute the total variances.

THE ONLY FILL IN OPTION IS F OR U OR NEITHER

Flexible hudget Perlormance Report For the Year Ended December 31, 2018 2 3 5 Budget Amounts Actual Per Unit Results Flexible Budget Variance Sales Volume Variance Flexible Static Budget Budget Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income What variance contributed most to the years favorable resuits? What caused this variance? The variance contributing most to the years excellent results is the favorable