Answer:
Income 219,500 256,000 36,500 Favourable
Explanation:
Flexible Budget report showing variances between budgeted and actual results.
Flexible Actual Variance
Sales 872,000 894,000 22,000 Favourable
Variable expenses 381,500 352,000 29,500 Unfavorable
Contribution margin 490,500 542,000 51,500 Favourable
Fixed expenses 271,000 286,000 15000 Unfavorable
Income 219,500 256,000 36,500 Favourable
Sales $80×$10,900=$872,000
Variable $35×$10,900=$381,500
