Exhibit 1. Current Quarter Actual and Budgeted Results
Current Quarter
Actual Results Master Budget
Number of Cases Sold 99,000 100,000
Sales Revenue $2,663,100 $2,690,000
Less: Variable Costs
Direct Materials-Block Cheese 2,156,220 $1,890,000
Direct Labor 181,170 $150,000
Variable Overhead 354,420 $300,000
Contribution Margin $ (28,710) $ 350,000
Less: Fixed Costs - Selling & Administrative $152,500 $150,000
Operating Income $ (181,210) $ 200,000
Exhibit 2. Select Product Data
Actual Budget
Sales Revenue
Number of Cases Sold 99,000 100,000
Selling Price per Case $26.90 $26.90
Direct Materials
Block Cheese
Cost per Pound of Block Cheese $3.30 $3.00
Pounds of Cheese per Case 6.6 6.3
Pounds of Block Cheese Purchased & Used 653,400 600,000
Direct Labor
Hourly Rate $15.25 $15.00
Production Labor Hours per Case 0.12 0.10
Variable Manufacturing Overhead
Rate per Case $3.58 $3.00
Fixed Costs - Selling & Administrative $152,500 $150,000
