Bach Table Company manufactures tables for schools. The 2011 operating budget is

ID: 2373749 • Letter: B

Question

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.