Top managers of Root Industries predicted 2024 sales of 15,000 units of its product at a unit price of $10.00. Actual sales for the
year were 14,800 units at $11.00 each. Variable costs were budgeted at $2.40 per unit, and actual variable costs were $2.50 per
unit. Actual fixed costs of $42,000 exceeded budgeted fixed costs by $2,500.
Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused
this variance?
Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the
contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter
a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)
Root Industries
Flexible Budget Performance Report
For the Year Ended December 31, 2024
1
2
3
4
5
(1)-(3)
(3)-(5)
Budget
Amounts
Flexible
Sales
Actual
Budget
Flexible
Volume
Static
Per Unit
Results
Variance
Budget
Variance
Budget
Units
Sales Revenue
Variable Costs
Contribution Margin