Quindo Table Company manufactures tables for schools. The 2015 operating budget

Question

Quindo Table Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $50 per table. Budgeted variable costs are $30 per unit, while fixed costs total $660,000 Actual sales were 46,000 units at $60 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000. Required: Prepare a variance analysis report with both flexible-budget and sales- volume variances. Quindo Table Company Variance Analysis Actual Flexible Flexible Volume Results VariancesBudget Variances Sales-Static Units sold a) ? b) ? d) ? e) ? Sales g) ? h) ? Variable costs )? 1) ? m) ? n) 0) ? Contribution margin p) ? q) ? r) ? t) ? Fixed costs u) ? w) ? y) Operating income z) ? aa) ? cc) ? dd) ?

Explanation / Answer

Quindo Table Company Variance Analysis Actual Results Flexible Variances Flexible Budget Volume Variance Sales-Static Units sold 46000 0 46000 2000 44000 Sales 2760000 460000 2300000 100000 2200000 (46000*60) (46000*50) (44000*50) Variable costs 1518000 138000 1380000 60000 1320000 (46000*33) (46000*30) (44000*30) Contribution margin 1242000 322000 920000 40000 880000 Fixed costs 627000 -33000 660000 0 660000 Operating income 615000 355000 260000 40000 220000

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