1. How many pools did Surf Land originally think they would install in April? The that Surf Land planned to sell 2. How many pools did Surf Land actually install in April? The that Surf Land installed 3. How many pools is the flexible budget based on? Why? The flexible budget for performance reports is always based on the pools in April. pools in April that managers can compare to output for the month. This is done so meaning they can compare Therefore, Surf Land's flexible budget is based on pools. 4. What was the budgeted sales price per pool? (Round your answer to the nearest whole dollar.) The budgeted sales price is per pool. 5. What was the budgeted variable cost per pool? (Round your answer to the nearest whole dollar.) The budgeted variable cost is per pool. 6. Define the flexible budget variance. What causes it? Requirements 1. How many pools did Surf Land originally think it would install in April? 2. How many pools did Surf Land actually install in April? 3. How many pools is the flexible budget based on? Why? 4. What was the budgeted sales price per pool? 5. What was the budgeted variable cost per pool? 6. Define the flexible budget variance. What causes it? 7. Define the volume variance. What causes it? 8. Fill in the missing numbers in the performance report. 4 Print Done As the name suggests, the flexible budget variance is the difference between the and the Since the and the Yare based on of output, this variance highlights unexpected revenues and expenses that are caused by factors other than 7. Define the volume variance. What causes it? The volume variance is the difference between the and the The only difference between these two budgets is the Therefore, the volume variance is caused by differences between 8. Fill in the missing numbers in the performance report. Be sure to indicate whether variances are favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance as favorable (F) or unfavorable (U), if the variance is 0, make sure to enter in a "0" A variance of zero is considered favorable.) Surf Land Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Actual Variance Flexible Budget Volume Variance Master Budget 4 Therefore, Surf Land's flexible budget is based on pools 4. What was the budgeted sales price per pool? (Round your answer to the nearest whole dollar.) The budgeted sales price is per pool 5. What was the budgeted variable cost per poor? (Round your answer to the nearest whole dollar.) The budgeted variable cost is per pool 6. Define the flexible budget variance. What causes it? As the name suggests, the flexible budget variance is the difference between the and the Since the and the are based on of output, this variance highlights unexpected revenues and expenses that are caused by factors other than 7. Define the volume variance. What causes it? The volume variance is the difference between the and the The only difference between these two budgets is the Therefore, the volume variance is caused by differences between 8. Fill in the missing numbers in the performance report. Be sure to indicate whether variances are favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance as favorable (F) or unfavorable (U), if the variance is 0, make sure torenter in a "0. A variance of zero is considered favorable.) Surf Land Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Actual Variance Output units (pools installed) 104,000 Flexible Budget Volume Variance Master Budget Sales revenue $110,000 88,000 Operating expenses: Variable expenses 54,000 60,000 48,000 Fixed expenses 23,000 27.200 27,200 Total operating expenses Calculator 38F Light rain able 2 D Surf Land Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Actual Variance Flexible Budget Volume Variance Budget Master 5 Sales volume (number of pools installed) 5 7 7 4 $ 104,000 110.000 $ 86.000 16 Sales revenue 7 Operating expenses: 8 Variable expenses 19 Fixed expenses 10 Total operating expenses $ 54,000 23.000 ? Print Done 4 are caused b $ 60.000 27.200 48.000 27 200 2 te of zero is A 1 2 3 B C D E F Surf Land Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 4 Actual Flexible Budget Variance Flexible Volume Master Budget Variance Budget 5 Sales volume (number of pools installed) 5 ? ? ? 4 $ 104,000 ? $ 110,000 ? $ 88,000 6 Sales revenue 7 Operating expenses: 8 Variable expenses 9 Fixed expenses 10 Total operating expenses $ 54,000 $ 60,000 $ 48,000 23,000 ? 27,200 ? 27,200 ? ? ? ? ? Print Done