1. How many pools did Surf World originally think it would install in April?

2. How many pools did Surf World 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.

 

Surf Land Pools Income Statement Performance Report Year Ended April 30 Flexible Budget for Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Actual Prices Variance Output Units Variance Budget 6. ? Output units (pools installed) Sales revenue 2$ 104,000 ? $ 110,000 ? 2$ 91,665 Variable expenses 58,000 61,000 24,000 ? ? 50,835 Fixed expenses 20,000 ? 24,000 Total expenses 78,000 85,000 ? 74,835 $ 26,000 $ 25,000 ? 16,830 Operating income %24 %24