Contemporary Furniture manufactures office desks. The firm budgeted to sell 5,000 desks
at $200 per desk in 2020. The budgeted costs include $80 variable cost per desk and
$200,000 fixed cost.
The firm sold 6,000 desks at $190 and incurred $78 variable cost per desk and $220,000
fixed cost in 2020.
Required: Prepare a variance analysis report identifying both flexible budget and sales
volume variances.