Bach Table Company Manufactures Tables for Schools

question 54

Essay

Bach Table Company manufactures tables for schools. The 2011 operating budget is based on sales of 40,000 units at $50 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $32 per unit, while fixed costs total $600,000.
Actual income for 2011 was a surprising $354,000 on actual sales of 42,000 units at $52 each. Actual variable costs were $30 per unit and fixed costs totaled $570,000.
Required:
Prepare a variance analysis report with both flexible-budget and sales-volume variances.

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Definitions:

Tariff of 1828

Known as the "Tariff of Abominations" by its critics, it was a protective tariff passed by Congress to protect industry in the northern United States, which adversely affected the southern economy.

Abomination

Something that causes disgust or hatred, often used in moral or religious contexts.

Peggy Eaton

A central figure in the Petticoat Affair, a 1830s scandal that affected the cabinet of U.S. President Andrew Jackson.

Public Sphere

The public sphere is a concept in social sciences referring to an area in social life where individuals can come together to freely discuss and identify societal problems, and through that discussion influence political action.