Problem A D E Andrea Company is preparing its planned operating budget for the year using the following da Expected sales volume (in units) Budgeted sales price per unit 46,000 $86.00 Variable manufacturing costs per unit: Direct materials $39.00 Direct Labor $17.00 Manufacturing Overhead $18.00 0 Fixed manuf. overhead per year $92,000 13 Selling and administrative expenses: Variable amount per unit $7.00 14 15 $377,000 Fixed amount per year The actual sales results for Andrea Company, as of December 31, are shown below. Andrea 16 Company produced and sold 51,000 units this period. bertine ard Font Alignment A B D E he actual sales results for Andrea Company, as of December 31, are shown below. Andrea company produced and sold 51,000 units this period. Sales (actual 51,000 units x $85 actual price per unit) $4,335,000 Variable costs: Direct materials (actual $41 per unit) 2,091,000 Direct labor (actual $21 per unit) 1,071,000 Var. Mfg Overhead (actual $13 per unit) 663,000 Variable Selling and Admin expenses 357,000 2 (actual $7 per unit) 4,182,000 Total Variable Costs 3 153,000 24 Contribution Margin 92,700 25 Fixed Manufacturing Overhead 375,000 26 Fixed Selling and Admin expenses 467,700 27 Total Fixed Costs (314,700) 28 Operating Income 29 statement for the vaarended Total Variable Costs 4,182,000 158,000 Sontribution Margin Fixed Manufacturing Overhead Fixed Selling and Admin expenses 92,700 375,000 Total Fixed Costs 467,700 (314,700) Operating Income Required: a. Prepare a Budgeted Income Statement (use the multi-step income statement) for the year ended 1 December 31 using the budgeted sales volume and sales price. b. Prepare a Flexible Budget Performance Report (use the contribution margin format) showing a flexible budget at the ACTUAL units, the actual results, and any variance. Analyze the efficiency of the operations 32 and explain the results. Andrea Company