Question: Please help, I am struggling with this problem. Travis Table Company manufactures tables for schools. The 2020 operating budget is based on sales of 20,000
Please help, I am struggling with this problem.
Travis Table Company manufactures tables for schools. The 2020 operating budget is based on sales of 20,000 units at $100 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $64 per unit, while fixed costs total $600,000. Actual sales were a surprising 21,000 units at $104 each. Actual variable costs were $60 per unit and fixed costs totaled $580,000. a. Complete the Variance Analysis below including the Actual Results, Flexible Budget, Static Budget and the variances for each category. Also indicate by an F or U if each variance is Favorable or Unfavorable. b. What is the Flexible Budget variance? Is it Favorable or Unfavorable? c. What is the Sales Volume variance? Is it Favorable or Unfavorable? Travis Table Company Variance Analysis Actual Results Flexible Budget Static Budget Variances Variances Units sold Sales Variable costs Contribution margin Fixed costs Operating income
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