Using the following data, prepare a variance analysis (Master Budget v. Flexible Budget v. Actual
Results) of the company’s Contribution Margin Income Statement. Indicate whether variances are
favorable (F) or unfavorable (U). (25%)
Standard cost of Product A $ ACTUAL Results
DM (Variable) 50 Sales: 900 units
DL (Variable) 20 DM: $46,075
Variable OH (4 hrs x $2 per hr) 8 DL: $21,210
Fixed OH (4 hrs x $ 6 per hr) 24 Variable OH: $ 9,450
Budgeted results
Sales: 800 units
Selling price: $150 per unit
102 Fixed OH: $25,000
