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Ellis Animal Health, Inc., produces a generic medication used to treat cats with feline diabetes. The liquid medication is sold in 100 ml vials. Ellis employs a team of sales representatives who are paid varying amounts of commission. Given the narrow margins in the generic veterinary drugs industry, Ellis relies on tight standards and cost controls to manage its operations. Ellis has the following budgeted standards for the

month of April 2017:

Average selling price per vial

$ 8.30

Total direct materials cost per vial

$ 3.60

Direct manufacturing labor cost per hour

$ 15.00

Average labor productivity rate (vials per hour)

100

Sales commission cost per vial

$ 0.72

Fixed administrative and manufacturing overhead

$990,000

Ellis budgeted sales of 700,000 vials for April. At the end of the month, the controller revealed that actual results for April had deviated from the budget in several ways:

Unit sales and production were 90% of plan.

Actual average selling price decreased to $8.20.

Productivity dropped to 90 vials per hour.

Actual direct manufacturing labor cost was $15.20 per hour.

Actual total direct material cost per unit increased to $3.90.

Actual sales commissions were $0.70 per vial.

Fixed overhead costs were $110,000 above budget.

Calculate the following amounts for Ellis for April 2017:

Required

1. Flexible budgets for 600,000 700,000 and 800,000 units

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