132. A product has a sales price of $20. Based on a 15,000-unit production level, the variable costs are $12 per unit and the fixed costs are $6 per unit. Using a flexible budget for an actual production and sales level of 18,000 units, what is the budgeted operating income?
133. Thomas Co. provides the following fixed budget data for the year:
Sales (20,000 units)
$600,000
Cost of sales:
Direct materials
$200,000
Direct labor
160,000
Variable overhead
60,000
Fixed overhead
80,000
500,000
Gross profit
$100,000
Operating expenses:
Fixed
$ 12,000
Variable
40,000
52,000
Income from operations
$ 48,000
The company’s actual activity for the year follows:
Sales (21,000 units)
$651,000
Cost of goods sold:
$231,000
168,000
73,500
77,500
550,000
$101,000
12,000
39,500
51,500
$ 49,500
Prepare a flexible budget performance report for the year using the contribution margin format.
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