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Question - Profit Variance Analysis
Diaz Company prepared a budget last period that called for sales of 14,000 units at a price of $12 each. Variable costs per unit were budgeted to be $5. Fixed costs were budgeted to be $21,000 for the period. During the period, production was exactly equal to actual sales of 14,200 units. The selling price was $12.15 per unit. Variable costs were $5.90 per unit. Fixed costs were $20,000.
Required - Create a profit variance report to show the difference between the master budget and the actual profits.
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