Master Budget

Product A Product B
Quantity 800 1600 2400
Sales Price per unit 200 100
Variable cost per unit 100 50
Total sales 160000 160000 320000
Total variable cost' 80000 80000 160000
Margin 80000 80000
per unit contribution margin 100 50 66.66666666667
fixed cost 75000
net profit 85000
actual profit 72000
Profit variance -13000
15000

a) total profit variance= actual profit-master budget profit

-13000

b) Sales volume variance=(actual Q- budgeted Q)*budgeted per unit contribution

-5000

Flexible budget variance=actual profit-flexible budget profit

-8000

c) Sales price variance= (actual sales price-budgeted sales price)*actual sales quantity
7000 8500
15500

Fixed cost variance=budgeted fixed cost-actual fixed cost

-1000

Variable cost variance=budgeted flexible var cost-actual var cost

22500

d) sales mix variance= actual total sales*(WUCMflexible-WUCMmaster)

-5000

sales quantity variance=(actual total sales-budgeted total sales)*WUCMmaster budget

0
 Flexible Budget Actual Budget
Product A Product B Product A Product B
700 1700 2400 700 1700 2400
200 100
100 50
140000 170000 310000 147000 178500 325500
70000 85000 155000 84000 93500 177500
70000 85000 63000 85000
100 50 64.58333 90 50 73.95833

80000 actual profit 72000

72000
8000

master budget