Maria Baldwin was a bit anxious as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they’d feel more comfortable spending on the company’s splurge item—a luxurious hooded cotton robe. Alas, actual production and sales ended at 5,100 units, a whopping 1,000 units shy of the company’s original budget. The following information presents the company’s actual income statement and other key information for Maria.

Actual Income
Sales
$800,700
Variable costs:
DM
172,125 (for 11,475 yards purchased and used)
DL
75,276 (for 3,672 hours used)
Variable-MOH
45,900
Contribution margin
507,399
Fixed costs:
Fixed-MOH
170,978
Fixed SG&A
243,100
Operating income
$93,321

Standards are as follows.

Standard Quantity per Unit
Standard Price
Direct materials
2.30 yards $16.00 per yard
Direct labor
0.70 DL hours $21.00 per DL hour
Variable-MOH
2.30 yards $5.00 per yard
Fixed-MOH
2.30 yards $13.00 per yard

Additional master budget information:

Selling price $175
Fixed SG&A expense $288,600
(a)
Present the company’s complete flexible budget for the year and compare it to the actual results to determine flexible budget variances for each line item; include the amount and sign for all variances.

Actual
Flexible Budget Variances
Flexible Budget
Sales
$800,700 $enter a dollar amount
select an option
$enter a dollar amount
Less: Variable costs:
Direct materials
172,125 enter a dollar amount
select an option
enter a dollar amount
Direct labor
75,276 enter a dollar amount
select an option
enter a dollar amount
Variable-MOH
45,900 enter a dollar amount
select an option
enter a dollar amount
Contribution margin
$507,399 $enter a total amount for the first part
select an option
$enter a total amount for the first part
Less: Fixed costs
Fixed-MOH
170,978 enter a dollar amount
select an option
enter a dollar amount
SG&A
243,100 enter a dollar amount
select an option
enter a dollar amount
Operating income
$93,321 $enter a total operating income amount
select an option
$enter a total operating income amount