Managers at Metlock, Inc. were cautiously optimistic about receiving their bonuses at year-end. Periodic communications from the top noted that the sales team had been exceeding targets throughout the year, which led to steady production activity to keep pace. Managers knew that a company profit margin of 5% meant bonuses for everyone. The production crew had been managing costs well but wasn't sure where final costs would land with the sales volume higher than planned. The following information outlines actual and budgeted results for the year. Actual Master Budget Sales volume (units) 51,600 44,500 Selling price $14.30 $13.70 DM cost/unit $2.90 $2.80 DL cost/unit $1.75 $1.80 Variable-MOH cost/unit $1.50 $1.50 Variable SG&A cost/unit $0.50 $0.50 Fixed-MOH cost $222,000 $211,400 Fixed SG&A cost $139,000 $134,800 Your answer is partially correct Prepare Metlock's flexible budget and actual income statement for the year. Per unit Sales volume Actual Flexible Budget Per unit 51,600 51,600 Sales $14.30 $ SA 51,600 737,880 $13.70 Variable costs: Direct materials 2.90 51,600 149,640 2.80 Direct labor 1.75 51.600 90.300 1.80 Variable-MOH 77,400 1.50 1.50 51,600 Variable SG&A 0.50 51,600 25,800 0.50 Contribution margin $7.65 51,600 394,740 $7.10 Direct materials 2.90 51,600 149,640 2.80 Direct labor 1.75 51.600 90.300 180 Variable-MOH Variable SG&A 1.50 51,600 77400 1.50 0.50 51,600 25,800 0.50 Contribution margin $7.65 51,600 394,740 $7.10 Fixed costs: Fixed-MOH Fixed SG&A Operating income 000 222,000 139,00 33,740 (b) Determine the flexible budget variances and sales price variance, noting the amount and sign for each Sales Variable costs: Direct materials Direct labor Variable-MOH Variable SG&A Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income Flexible Budget Varlance > (d1) Did the company hit its target profit margin? (Round answers to 2 decimal places, eg. 15.25%) Profit margin Actual % The company its 5% profit margin target. Flexible Budget %