Answers
Computation:
| Particulars | Actual Results | Flexible Budget Variance | Flexible Budget | Sales Activity Variance | Master Budget |
| Units | 15,000 | 15,000 | 3,000U | 18,000 (15,000+3,000) | |
| Sales | $213,250 | $18,250F | $195,000 | $50,550U | $245,550 |
| Less: | |||||
| Variable Manu. Costs | $92,250 | $9,750F | $102,000 | $39,000F | $141,000 |
| Variable Marketing & Admin | $54,000 | $9,750U | $44,250 | $3,750F | $48,000 |
| Contribution Margin | $67,000 | $18250F | $48,750 | $7,800U | $56,550 |
Option 1 - $195,000
Option 2 - Only A is false
31. Option 4 - The Market Price Charged to outside customers less costs saved by transferring internally.
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