Whistler Table Company Manufactures Tables for Schools

Essay

Whistler Table Company manufactures tables for schools.The current year operating budget is based on sales of 20,000 units at $100 per table.Operating income is anticipated to be $120,000.Budgeted variable costs are $64 per unit while fixed costs total $600,000.Actual income for the year was $2,184,000 on actual sales of 21,000 units.Actual variable costs were $60 per unit and fixed costs totaled $570,000.Required:
Prepare a Level 2 variance analysis report with both flexible-budget and sales-volume variances.