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Brodrick Company expects to produce 21,700 units for the year ending December 31. A flexible budget for 21,700 units of production reflects sales of $564,200; variable costs of $65,100; and fixed costs of $143,000.

Assume that actual sales for the year are $653,000 (27,000 units), actual variable costs for the year are $113,700, and actual fixed costs for the year are $135,000.

Prepare a flexible budget performance report for the year.

Brodrick Company

Flexible Budget Performance Report

For Year Ended December 31

Flexible Budget Actual Results Variances Favorable/ Unfavorable

_______________

_______________

Contribution margin

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_______________

Answer 1

Flexible Budget performance report
			Actual	Spending variance		Flexible	Activity Vvariance		Planned
Units			27000			27000			21700
Sales			653000	49000	U	702000	137800	F	564200
Variable cost			113700	32700	U	81000	15900	U	65100
Contribution margin			539300	81700	U	621000	121900	F	499100
Fixed cost			135000	8000	F	143000	0		143000
Net income			404300	73700	U	478000	121900	F	356100