2) Please use the following data for problems #2-5:

Onyx Company prepared a static budget at the beginning of the month. It's the end of the month and the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows:

Static budget: Sales volume: 1,000 units Price: $80 per unit

Variable expense: $40 per unit Fixed expenses: $37,000 per month

Actual results: Sales volume: 990 units Price: $90 per unit

Variable expense: $45 per unit Fixed expenses: $34,000 per month

Complete the grid below to calculate the variances and then answer the following questions.

	Actual	Flexible Budget		Flexible	Sales Volume		Static
	Results	Variance		Budget	Variance		Budget
Units/volume	990	0		990	10	U	1,000
Sales revenue *							$80,000
- Variable expenses**							40,000
= Contribution margin							40,000
- Fixed expenses							37,000
= Operating income/(loss)							$3,000
* price/unit	$90.00			$80.00			$80.00
**var cost/unit	$45.00			$40.00			$40.00

2) How much was the flexible budget variance for sales revenue?

3) How much was the flexible budget variance for Contribution Margin?

4) How much was the flexible budget variance for Operating Income/(Loss)?

5) How much was the Static budget variance for Operating Income/(Loss)?