11.

Solitaire Companys fixed budget performance report for June follows. The $303,750 budgeted expenses include $275,400 variable expenses and $28,350 fixed expenses. Actual expenses include $37,050 fixed expenses.

	Fixed Budget			Actual Results			Variances
Sales (in units)		8,100			10,500
Sales (in dollars)	$	405,000		$	525,000		$	120,000	F
Total expenses		303,750			367,500			63,750	U
Income from operations	$	101,250		$	157,500		$	56,250	F

Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately.

SOLITAIRE COMPANY
Flexible Budget Performance Report
For Month Ended June 30
	Flexible Budget	Actual Results	Variances	Fav./Unf.
Sales	$525,000	$525,000	$0	Unfavorable
Variable expenses
Contribution margin
Fixed expenses
Income from operations