Use the following information for the Quick Study below. (The following information applies to the questions displayed below.) Brodrick Company expects to produce 21,300 units for the year ending December 31. A flexible budget for 21,300 units of production reflects sales of $426,000; variable costs of $63,900; and fixed costs of $140,000. QS 21-3 Flexible budget LO P1 If the company instead expects to produce and sell 27,100 units for the year, calculate the expected level of income from operations. ------Flexible Budget------ ------Flexible Budget at ------ Variable Amount per Unit Total Fixed Cost 21,300 units 27,100 units Sales Contribution margin $ 0.00 $ 0 $ 0 $ $ 0 Use the following information for the Quick Study below. (The following information applies to the questions displayed below.] Brodrick Company expects to produce 21,300 units for the year ending December 31. A flexible budget for 21,300 units of production reflects sales of $426,000; variable costs of $63,900; and fixed costs of $140,000. QS 21-4 Flexible budget performance report LO P1 Assume that actual sales for the year are $496,000 (27,100 units), actual variable costs for the year are $113,300, and actual fixed costs for the year are $135,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) BRODRICK COMPANY Flexible Budget Performance Report For Year Ended December 31 Flexible Budget Actual Results Variances Favorable! Unfavorable Contribution margin 0 0 $ 0 $ 0 Tercer reports the following for one of its products. Direct materials standard (4 lbs. @ $2 per lb.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used $ 8 per finished unit 320,000 lbs. 62,000 units $560,000 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price and quantity variances and classify each as favorable, unfavorable or no variance. Actual Cost Standard Cost