In: Accounting
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results.
Actual Flexible Static
Results Budget Budget
Sales volume (in units) 18,000 23,000
Sales revenues $900,000 $ $1,150,000
Variable costs 360,000 $ ________ 463,910
Contribution margin 540,000 $ 686,090
Fixed costs 275,300 $ ________ 269,500
Operating profit $264,700 $ $416,590
The flexible budget will report ________ for variable costs.