Toyworld Manufactures and Sells a Line of Toys Required:
A)Your Assistant Has Requested You to Complete the "Flexible

Essay

Toyworld manufactures and sells a line of toys.The toys are primarily distributed through department stores.As president of Toyworld,you wanted to analyze Toyworld's profitability.Your capable assistant provided you with the following data:
$\begin{array}{|l|r|r|}\hline & \text { Static/Master Actual } & \text { Budge } \\\hline \text { Selling price, per unit } & \$ 20.00 & \$ 21.00 \\\hline \begin{array}{l}\text { Variable manufacturing cost, } \\\text { per unit }\end{array} & 11.00 & 12.0 \\\hline \begin{array}{l}\text { Variable marketing and } \\\text { administrative expenses, } \\\text { total }\end{array} & 9,000 & 11,55 \\\hline \begin{array}{l}\text { Fixed manufacturing cost, } \\\text { total }\end{array} &34,500 & 36,000 \\\hline \begin{array}{l}\text { Fixed marketing and } \\\text { administrative expenses, } \\\text { total }\end{array} & 40,000 & 44,000 \\\hline \text { Sales volume, in units } & 9,000 & 10,000 \\\hline 5 \% \text { of sales revenue } & \\ \hline\end{array}$ Required:
a)Your assistant has requested you to complete the "Flexible Budget" and "Static/Master Budget" columns of the analysis,reproduced below (She had to attend to an out-of-town emergency):

b)Calculate the following variances: flexible budget variance,sales volume variance,and total static budget variance.