1 Question 4-Variance Analysis (6 marks) 2 Required: The owners can see that the company sold a different amount of units than budgeted. They have asked you to determine the flexible budget amounts and calculate the variances when comparing the flexible budget to the actual results (5 marks). 3 4 Flexible Budget Report Static Flexible Variance (show or Budget Budget Actual as positive Amount Amount Results amount) Unfavorable (C) Sales in Units Sales Variable Cost Contribution Margin 4,000 4,100 $ 500,000 507,000 220,000 218,400 280,000 288,600 Fixed Cost 20,000 21,000 et Operating Income 260,000 267,600