Ch. 21 Test v1 Section 4 Thomas Co. provides the following fixed budget data for the year: $600,000 Sales (20,000 units) Cost of sales $200,000 Direct materials Direct labor Variable overhead Fixed overhead 160,000 60,000 80,000 500,000 $100,000 Gross profit Operating expenses: $12,000 Fixed Variable 40,00052,000 $48,000 Income from operations The company's actual activity for the year follows Sales (21,000 units) Cost of goods sold: $651,000 Direct materials Direct labor Variable overhead Fixed overhead $231,000 168,000 73,500 77,500 550,000 Gross profit Operating expenses: $101,000 Fixed 12,000 39,500 51,500 Variable Income from operations Prepare a flexible budget performance report for the year using the contribution margin format. (Hint: In a performance report you are comparing the flexible budget (at actual production level) to the actual figures and identifying the differences as variances either favorable or unfavorable.) $49,500 BudgetActual Variance F or U