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You have misfiled the company's master budget for the period which just ended. Rather than admit this to your supervisor, you are going to try

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You have misfiled the company's master budget for the period which just ended. Rather than admit this to your supervisor, you are going to try to reconstruct the budget. You have gathered the following information to accomplish this task. The actual results for the period are attached. You know that the company planned to sell 162,000 units at a price of $5 each. Variable marketing and administrative costs are budgeted at 12% of sales revenue. You have discovered that manufacturing fixed costs are estimated to be $1.50 per unit at the budgeted volume. Also, you know that company policy is to budget for an operating profit of \$1 per unit. Finally, you think that the contribution margin in the master budget was $3 per unit. REQUIRED: Using the attached form, prepare a report showing the differences (variances) between the actual results, flexible budget, and master budget. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{c} ACTUAL RESULTS FOR PERIOD TO USE TO \\ PREPARE PROFIT VARIANCE ANALYSIS REPORT \end{tabular}} \\ \hline Sales Volume (Units) & & 180,000 \\ \hline & & \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{ Variable Costs: }} \\ \hline & & \\ \hline Manufacturing & $ & 324,000 \\ \hline Selling and Administrative & $ & 90,000 \\ \hline \multicolumn{3}{|l|}{ Fixed Costs: } \\ \hline Manufacturing & $ & 239,000 \\ \hline Selling and Administrative & $ & 84,000 \\ \hline Operating Profit & $ & 226,000 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{7}{|c|}{ PROFTT VARIANCE ANALYSIS REPORT } \\ \hline & \begin{tabular}{c} Actual \\ Results \end{tabular} & \begin{tabular}{c} Flexible \\ Budget \\ Variances \end{tabular} & \begin{tabular}{c} Flexible \\ Budget \end{tabular} & \begin{tabular}{c} Sales \\ Volume \\ Variances \end{tabular} & \begin{tabular}{c} Master \\ Budget \end{tabular} \\ \hline Sales in Units & & & & & \\ \hline & & & & & \\ \hline Sales Revenue & & & & & \\ \hline Variable Costs: & & & & & \\ \hline Manufacturing & & & & & \\ \hline Selling and Administrative & & & & & \\ \hline Total Variable Costs & & & & & \\ \hline Contribution Margin & & & & & \\ \hline Fixed Costs: & & & & & \\ \hline Manufacturing & & & & & \\ \hline Selling and Administrative & & & & & \\ \hline Total Fixed Costs & & & & \\ \hline Operating Profit & & & & \\ \hline & & & & & \\ \hline \end{tabular}

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