Static Budget Based Analysis Budget Actual Static Budget Variance

Units Sold 12,000.00 10,000.00 -2,000.00

Selling Price 1,200.00 1,250.00
Direct materials 600.00 621.60
Direct Wage 160.00 198.00
Variable OH 120.00 130.50
Fixed Overhead 2,760,000.00 2,850,000.00

Revenue from Sales 14,400,000.00 12,500,000.00 -1,900,000.00

Variable Costs 7,200,000.00 6,216,000.00 984,000.00
Direct Wage 1,920,000.00 1,980,000.00 -60,000.00
Variable Ohs 1,440,000.00 1,305,000.00 135,000.00
Total Variable Costs 10,560,000.00 9,501,000.00 1,059,000.00
Contribution Margin 3,840,000.00 2,999,000.00 -841,000.00
Fixed Costs 2,760,000.00 2,850,000.00 -90,000.00
Net Profit 1,080,000.00 149,000.00 -931,000.00

Negative figures indicate Unfavourable effect on the operating income and

Positive figures indicate indicate Favourable effect on the Operating Income;

Particulars Budget Flexible Budget Actual

Units Sold 12,000.00 10000 10,000.00
Selling Price 1,200.00 1,200.00 1,250.00
Direct materials 600.00 600.00 621.60
Direct Wage 160.00 160.00 198.00
Variable OH 120.00 120.00 130.50
Fixed Overhead 2,760,000.00 2,760,000.00 2,850,000.00

Revenue from Sales 14,400,000.00 12,000,000.00 12,500,000.00

Variable Costs 7,200,000.00 6,000,000.00 6,216,000.00
Direct Wage 1,920,000.00 1,600,000.00 1,980,000.00
Variable Ohs 1,440,000.00 1,200,000.00 1,305,000.00
Total Variable Costs 10,560,000.00 8,800,000.00 9,501,000.00
Contribution Margin 3,840,000.00 3,200,000.00 2,999,000.00
Fixed Costs 2,760,000.00 2,760,000.00 2,850,000.00
Net Profit 1,080,000.00 440,000.00 149,000.00
Sales Volume Variance Budgeted Contribution Margin per unit * (Actual Units Sold - Static Budget units
(1200-880) Multiplied by (10000units - 12000 units)
640,000.00
Selling Price Variance Actual Units Sold * (Actual SP - Budgeted SP)
10000 * (1250-1200)
500,000.00

Flexible Budget Variance Actual Profit - Flexible Budget profit

149,000.00 440,000.00
-291,000.00
Budget Variance
U

U
F
U
F
F
U
U
U

Sales Volume Flexible Budget

Variance Variance Total Variance

-2,400,000.00 500,000.00 -1,900,000.00

1,200,000.00 -216,000.00 984,000.00
320,000.00 -380,000.00 -60,000.00
240,000.00 -105,000.00 135,000.00
1,760,000.00 -701,000.00 1,059,000.00
-640,000.00 -201,000.00 -841,000.00
- -90,000.00 -90,000.00
-640,000.00 -291,000.00 -931,000.00
Actual Units Sold - Static Budget units Sold)
0units - 12000 units)

al SP - Budgeted SP)