Solution-What is the flexible budget for the production and

What is the flexible budget for the production and sale

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Reference no: EM132462643

Assume that in June Schmidt Machinery Company manufactured and sold 960 units for $846 each. During this month the company incurred $499,200 total variable expenses and $181,100 total fixed expenses.
Required for the Month of June:
                                     SCHMIDT MACHINERY COMPANY
                                   Analysis of Operating Income
                                              For October 2016

	(1) Actual Operating Income		(2) Master (Static? Budget		(3? Variances
Units	780		1,000		2201J*
Sales	$639,600	100%	$800,000	100%	$160,400U
Variable costs	350,950	55	450,000	56	99,050⁴*
Contribution margin	$288,650	45%	$350,000	44%	$ 61,350U
Fixed costs	160,650***	25	150,000¹	19	10,650U
Operating income	$128,000	20%	$200,000	25%	S 72,000U

Question 1. What is the flexible budget for the production and sale of 960 units?

Units sold
Sales
Variable expenses	I
Contribution margin		0
Fixed expenses
Budgeted operating income

Question 2.For June:

a. What is the sales volume variance, in terms of operating income?

b. What is the sales volume variance, in terms of contribution margin?

c. How do you calculate for June the following information?

Reference no: EM132462643

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What is the flexible budget for the production and sale

Reference no: EM132462643

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