Question

Nanco Industries Flexible Budget Performance Report: Sales and Operating Expenses For the Month Ended September 30 Flexible budget Flexible Volume Actual variance Budget Variance Master Budget Output units 28,000 30,500 $ 252,000 $ Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income 5,600 F 204,400 189,100 16,500 21,000

Answer 1

					Flexible			Master
		Actual	flexible budget vara		budget	Volume variance		budget
outpur units		28,000			28,000			30,500
Sales revenue		252,000	5,600	F	246,400	22,000	U	268400
less:Variable expenses		204,400	30,800	U	173600	15,500	F	189,100
Contribution margin		47,600	25,200	U	72,800	6,500	U	79,300
less:fixed expenses		16,500	4,500	F	21,000	0	N	21,000
operating income		31,100	20,700	U	51,800	6,500	U	58,300