Use the following data for Andrea Company in preparing its planned operating budget: Expected sales volume 50,000 units Forecasted selling price $92 per unit Variable manufacturing costs per unit: Direct materials $ 38.00 Direct labor $ 19.50 Manufacturing overhead S 16.50 Fixed manufacturing overhead per year $ 90,000 Selling and administrative expenses: Variable (per unit) $3.50 Fixed (per year) $ 475,000 The actual sales results for Andrea Company, as of December 31, are shown below. Andrea Company produced and sold 52,000 units this period. Sales (52,000 units x $90 per unit) $ 4,680,000 Variable costs: Direct materials 1,885,000 Direct labor 1,040,000 Variable Manufacturing overhead 819,000 208,000 Variable Selling and Admin expenses Total Variable costs Contribution Margin 3,952,000 832,000 82,000 Fixed Manufacturing overhead Fixed Selling and Admin expenses Total Fixed Costs Operating Income 480.000 562,000 270,000 $ a. Prepare a budgeted income statement (use multi-step income statement format) for the year ended December 31 using the expected sales volume b. Prepare a Flexible Budget Performance Report (use the contribution margin income statement format) showing a flexible budget at the ACTUAL units, the actual results, and a variance. Analyze the efficiency of operations. Compare and comment on the results Andrea Company Flexible Budget Performance Report For Year Ended December 31 Flex Budget @ 52,000 Actual actual units Variance Sales Self Check: Budget Hint? Variable Costs: Total Variable costs Self Check: Contribution margin Fixed costs: Total Fixed Costs Self Check: 5 Net Income 5 Self Check 7 8 9 0 Analysis (see homework instructions): 81 32 33 85 86 87 88