Problem
Santana Company produced and sold 100,000 units of its product in July.
For the level of production achieved in July, the budgeted amounts were: sales, $850,000; variable costs, $675,000; and fixed costs, $150,000.
July actual financial results are: sales, $837,500; variable costs, 656,250; and fixed costs, $150,000.
Prepare a flexible budget performance report for July.
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Flexible
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Flexible
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Budget
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Actual
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Budget
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_100000__units
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units
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Variances
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Sales
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850000
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-Var Cost
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675000
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Margin
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175000
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-FC
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150000
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Income
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Income
A) What is net income for the flexible budget?
B) What is net income for actual?
C) What is the total variance?