13) Bach Table Company manufactures tables for schools. The 2011 operating budget is based on sales of 40,000 units at $50 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $32 per unit, while fixed costs total $600,000. Actual income for 2011 was a surprising $354,000 on actual sales of 42,000 units at $52 each. Actual variable costs were $30 per unit and fixed costs totaled $570,000. Required:Prepare a variance analysis report with both flexible-budget and sales-volume variances.
Diff: 2Terms: static budget, flexible-budget variance, sales-volume varianceObjective: 2, 3AACSB: Analytical skillsObjective 7.41) The flexible-budget variance for direct cost inputs can be further subdivided into a:
CDiff: 1Terms: flexible-budget varianceObjective: 4AACSB: Analytical skills