1  a) Using the information in the case and Tables 1-3, prepare a flexible budget for the Berkshire Toy Company for the year ended June 30, 2021. Analyze the company's total master (static) budget variance for the year. Compare the flexible and master (static) budgets and prepare a schedule showing the sales volume variance. Compare the actual results and the flexible budget, and prepare a schedule showing the flexible budget variance. Subdivide the flexible budget variances into the appropriate price (rate or spending) and efficiency (usage or quantity) variances for materials, labor, and variable overhead.

	Units	Actual	Static	Variance
		555,556	500,000	55,556	F
Retail	74,965	3,898,180	5,200,000	1,301,820	U
Internet	335,429	15,429,734	14,400,000	1,029,734	F
Wholesale	145,162	5,516,156	3,800,000	1,716,156	F
Total Revenue		24,844,070	23,400,000	1,444,070
Direct Materials		2,785,531	2,457,510	328,021	U
Direct Labor		11,193,264	9,900,000	1,293,264	U
Variable Overhead		2,544,897	1,851,300	693,597	U
Variable Selling Expenses		993,763	828,000	165,763	U
Contribution Margin		7,326,615	8,363,190
Fixed Overhead		724,787	620,000	104,787	U
Fixed Selling & Admin		6,646,828	6705000	58,172	F
Operating Income		$ (45,000.00)	$1,038,190.00
	Units	Price	Revenue
Retail	100,000	$52.00	$5,200,000.00
Internet	300,000	$48.00	$14,400,000.00
Wholesale	100,000	$38.00	$3,800,000.00
Direct Materials	Std Quantity		Price/Cost		Cost per Unit
Acrylic Pile Fabric	0.02381	Bolts	42	per bolt	$1.0000
10mm acrylic eyes	2	eyes	0.25	per eye	$0.5000
45mm Plastic Joints	5	joints	0.15	per joint	$0.7500
Polyester Fiber Fill	0.9	lbs	2.45	per lb	$2.2050
Woven Label	1	label	0.05	per label	$0.0500
Designer Box	1	box	0.29	per box	$0.2900
Accessories	Various				$0.1200
					$4.9150
Direct labor
Sewing	0.4
Stuffing & Cutting	0.2
Assembly	0.2
Dressing & Packaging	0.1
	0.9		22		$19.80
Variable Manuf. OH	0.9	DLH	4.114	Per DHL	$3.70
Fixed Manufacturing OH.	0.9	DLH	2.17	Per DHL	$1.95
					$30.37

Answer rating: 100% (QA)

ANSWER Flexible Budget for Berkshire Toy Company for the year ended June 30 2021 Sales Revenue Categ... View the full answer