Problem - Andre Corporation manufactures inexpensive pens. Some of the company's data was misplaced. Use the following information to replace the lost data:
Analysis Actual
Results Flexible Variances Flexible Budget Sales-
Volume Variances Static Budget
Units Sold 112,500 112,500 103,125
Revenues $42,080 $1,000 F (A) $1,400 U (B)
Variable Costs (C) $200 U $15,860 $2,340 F $18,200
Fixed Costs $8,280 $860 F $9,140 $9,140
Operating Income $17,740 (D) $16,080 (E) $15,140
Required:
a. What are the flexible-budget revenues (A)?
b. What are the static-budget revenues (B)?
c. What are the actual variable costs (C)?
d. What is the total flexible-budget variance (D)?
e. What is the total sales-volume variance (E)?
f. What is the total static-budget variance?