Prepare a flexible budget performance report for the year

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Reference no: EM13568618

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.

Reference no: EM13568618

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