Bach Table Company Manufactures Tables for Schools

Essay

Bach Table Company manufactures tables for schools.The current year operating budget is based on sales of 40,000 units at $50 per table.Operating income is anticipated to be $300,000.Budgeted variable costs are $30 per unit, while fixed costs total $500,000.Actual income for the year was a surprising $2,268,000 on actual sales of 42,000 units.Actual variable costs were $33 per unit and fixed costs totaled $550,000.Required:
Prepare a Level 2 variance analysis report with both flexible-budget and sales-volume variances.