Vaughn Entertainment Corporation prepared a master budget for the month of November that was based on sales of 199,300 board games. The budgeted income statement for the period is as follows. $2,989,500 $936.710 358,740 577.970 Sales Revenue Variable expenses Direct materials Direct labor Variable overhead Total variable expenses Contribution margin Fixed overhead Fixed selling and administrative expenses Total fixed expenses Operating income 1,873,420 1,116,080 232.000 442.000 674,000 $442,080 During November, Vaughn produced and sold 153,600 board games. Actual results for the month are as follows. $2,202,000 Sales Revenue Variable expenses Direct materials Direct labor Variable overhead Total variable expenses Contribution margin $709,320 261,580 434,540 1,405,440 796,560 1,405,440 796,560 Total variable expenses Contribution margin Fixed overhead Fixed selling and administrative expenses Total fixed expenses Operating income 219,000 457.000 676,000 $120,560 (a-b) Your Answer Correct Answer Your answer is partially correct. (a) Prepare a flexible budget for November. (Round unit answers to 2 decimal places, e.g. 5.25 & all other answers to 0 decimal places, eg. 125.) Unit 153,600 games Sales revenue 15 $ 2304000 Less VA Variable expenses Direct material 4.70 i 721920 i Unit 153,600 games Sales revenue ta 15 $ 2304000 Less Variable expenses Direct material 4.70 i 721920 Direct labor 1.80 276480 i Variable overhead 2.90 i 445440 i Total variable expenses 9.40 1443840 Contribution margin 5.60 860160 Less Fixed expenses Overhead 232000 Selling and administrative 442000 Total fixed expenses 674000 i Operating income $ 186160 Actual Results Static Budget Variance Unit Sales Sales revenue $ Less V: Variable expenses Direct material Direct labor Variable overhead Total variable expenses Contribution margin Less VI: Fixed expenses Overhead Selling and administrative Total fixed expenses Operating income TA