Problem 1
Treasured Trinkets Company has the following information:
Actual Amounts
Master Budget
Quantity
4,360
4,200
Sales
21,300
20,000
Variable Costs
13,370
12,954
Contribution Margin
7,930
7,046
Fixed Costs
4,850
4,700
Operating Income
3,080
2,346
Required:
1. Calculate the flexible budget. Include each row of the contribution format income statement above.
2. Calcualte the Sales Activity Variances for each row of the contribution format income statement and
show if each is favorable or unfavorable.
3. Calcualte the Flexible Budget Variances for each row of the contribution format income statement and
ble or unfavorable.