This question is a $8 question because it needs to show the calculation for each number result.

5. Quindo Table Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $55 per table. Operating income is anticipated to be $220,000. Budgeted variable costs are $35 per unit, while fixed costs total $660,000.

Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000.

Required

Prepare a variance analysis report with both flexible-budget and sales-volume variances. (11 points)

Quindo Table Company

Variance Analysis

	Actual Results	Flexible Variances	Flexible Budget	Volume Variances	Static Budget
Units sold
Sales
Variable costs
Contribution margin
Fixed costs
Operating income

Indicate what is the static-budget variance and what is the flexible budget variance. (1 pt)

In looking at your answer what is the primary reason operating income increased from what was budgeted?(1 pt)