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[The following information applies to the questions displayed below.] Brodrick Company expects to produce 20,900 units for the year ending December 31. A flexible budget for 20,900 units of production reflects sales of $501,600; variable costs of $62,700; and fixed costs of $141,000.

QS 21-3 Flexible budget LO P1

If the company instead expects to produce and sell 26,200 units for the year, calculate the expected level of income from operations.

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	20,900 units	26,200 units
Contribution margin

QS 21-4 Flexible budget performance report LO P1

Assume that actual sales for the year are $583,800 (26,200 units), actual variable costs for the year are $113,400, and actual fixed costs for the year are $137,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

BRODRICK COMPANY
Flexible Budget Performance Report
For Year Ended December 31
	Flexible Budget	Actual Results	Variances	Favorable/ Unfavorable
Contribution margin