Question:
Flexible budget variance Consider the following partially completed income statement performance report for Gaje, Inc.
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GAJE, INC.
Income Statement Performance Report (partial)
Month Ended April 30, 2012
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Actual Results at
Actual Prices
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Flexible Budget
Variance
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Flexible Budget for Actual Number of
Units Sold
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Output units
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6,000
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6,000
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Sales revenue
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$90,000
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$78,000
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Variable expenses
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52,200
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49,500
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Contribution margin
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$37,800
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$28,500
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Fixed expenses
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16,200
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15,300
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Operating income
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$21,600
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$13,200
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Requirement
1. Complete the flexible budget variance analysis by filling in the blanks in the partial income statement performance report for 6,000 travel locks.