Bach Table Company Manufactures Tables for Schools

question 10

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.

---

Definitions:

Reliable Evidence

Information or data that is dependable and can be trusted to be accurate for use in making decisions or drawing conclusions.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping, as well as to hold objects at a convenient height for work.

Arson Evidence

Physical proof or indicators found at the scene of a fire that can suggest the fire was started intentionally.

Polymers

Large molecules composed of many repeated subunits, used in plastics, textiles, and various other materials.