Homework Answers
| Actual result | Master budget | |
| Sales revenue | 404,000 | 352,000 |
| (-) variable costs | 252,000 | 225,400 |
| Contribution margin | 152,000 | 126,600 |
| (-) fixed costs | 100,400 | 95,800 |
| Operating income | 51,600 | 30,800 |
A. Total master (static) budget variance = sales volume variance+ flexible budget variance= 4,600+16,200= 20,800 (F)
2.Sales volume variance= Flexible budget operating income- static budget operating income= 35,400-30,800=4,600(F)
C. Flexible budget variance= Actual operating income- Flexible budget operating income
= 51,600- 35,400= $16,200(F)
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