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Budget Variance Analysis-Nore Inc. produced 80,000 units

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Budget Variance Analysis-Nore Inc. produced 80,000 units

Budget Variance AnalysisNore Inc. produced 80,000 units, 8,000 more than budgeted. Production data are as follows.Except for physical units, all quantities are in dollars.Physical UnitsSalesVariable CostsContribution MarginFixed CostsOperating IncomeActualResults80,000Revenue &SpendingVariances6,400FlexibleBudgetF492,000ActivityVariancesPlanningBudget72,000720,000480,00030,000U150,000138,0001. In Excel, complete the schedule (determine values for all areas shaded in yellow).2. Indicate whether variances are favorable (F) or unfavorable (U) where applicable.3. Give a brief summary explanation of why the original target income was not attained.

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