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Maria Baldwin was a bit anxious as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so theyd feel more comfortable spending on the companys splurge itema luxurious hooded cotton robe. Alas, actual production and sales ended at 5,100 units, a whopping 1,000 units shy of the companys original budget. The following information presents the companys actual income statement and other key information for Maria.

Actual Income
Sales		$800,700
Variable costs:
DM		172,125	(for 11,475 yards purchased and used)
DL		75,276	(for 3,672 hours used)
Variable-MOH		45,900
Contribution margin		507,399
Fixed costs:
Fixed-MOH		170,978
Fixed SG&A		243,100
Operating income		$93,321

Standards are as follows.

		Standard Quantity per Unit			Standard Price
Direct materials		2.30	yards		$16.00	per yard
Direct labor		0.70	DL hours		$21.00	per DL hour
Variable-MOH		2.30	yards		$5.00	per yard
Fixed-MOH		2.30	yards		$13.00	per yard

Additional master budget information:

Selling price		$175
Fixed SG&A expense		$288,600

Present the companys complete flexible budget for the year and compare it to the actual results to determine flexible budget variances for each line item; include the amount and sign for all variances.

		Actual		Flexible Budget Variances			Flexible Budget
Sales		$800,700		$enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		$enter a dollar amount
Less: Variable costs:
Direct materials		172,125		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		enter a dollar amount
Direct labor		75,276		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		enter a dollar amount
Variable-MOH		45,900		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		enter a dollar amount
Contribution margin		$507,399		$enter a total amount for the first part	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		$enter a total amount for the first part
Less: Fixed costs
Fixed-MOH		170,978		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		enter a dollar amount
SG&A		243,100		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		enter a dollar amount
Operating income		$93,321		$enter a total operating income amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable		$enter a total operating income amount

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