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Erick Manufacturing Company established the following standard price and cost information:
Sales Price $50 per unit
Variable manufacturing cost $12 per unit
Fixed manufacturing cost $100,000
Fixed selling and administrative cost $40,000
Erick expected to produce and sell 10,000 units. Actual production and sales amounted to 9,500 units.
Required:
problem a) the pro-forma income statement in contribution format that would appear in Erick's master budget for the year (based on the planned level of activity).
problem b) the pro-forma income statement in contribution format that would appear in Erick's flexible budget (based on the actual level of activity).
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