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.

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Definitions:

Management Buyouts

A transaction where a company's management team purchases the assets and operations of the business they manage.

Limited Amount

A specific quantity or volume that is constrained or not in abundance, often applied to resources or capacities.

Note

A financial security that denotes a debt and is commonly used in agreements to specify terms of borrowing or promises to pay back a debt under specified conditions.

Balance

A state of equilibrium or equal distribution of weight, elements, or interests.