My co. provides the following fixed budget data for the year:
|
Sales (20000 units)
|
|
$600000
|
|
Cost of sales:
|
|
|
|
Direct materials
|
200000
|
|
|
Direct labor
|
160000
|
|
|
Variable overhead
|
60000
|
|
|
Fixed overhead
|
80000
|
500000
|
|
Gross profit
|
|
100000
|
|
Operating expenses:
|
|
|
|
Fixed
|
12000
|
|
|
Variable
|
40000
|
52000
|
|
Income from operations
|
|
48000
|
The company's actual activity for the year follows:
|
Sales (21000 units)
|
|
651000
|
|
COGS
|
|
|
|
Direct materials
|
231000
|
|
|
Direct labor
|
168000
|
|
|
Variable overhead
|
73500
|
|
|
Fixed overhead
|
77500
|
550000
|
|
Gross profit
|
|
101000
|
|
Operating expenses:
|
|
|
|
Fixed
|
12000
|
|
|
Variable
|
39500
|
51500
|
|
Income from operations
|
|
49500
|
Prepare a flexible budget performance report for the year using the contribution margin format.