2 1 Question 4-Variance Analysis (5 marks) 3 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). Flexible Budget Report Static Flexible Variance (show or Budget Budget Actual as positive Unfavorable 5 5 Sales in Units Amount Amount Results amount) (L) 4,500 4,200 Sales Variable Cost Contribution Margin Fixed Cost $ 540,000 500,000 225,000 218,400 315,000 281,600 22,000 21,000 Net Operating Income 293,000 260,600