8. The following is a partially completed performance report for Water Surf $(Click the icon to view the information.) Read the requirements? 1. How many pools did Water Surf originally think they would install in April? The that Water Surf planned to sell pools in April. 2. How many pools did Water Surf actually install in April? The D (2) that Water Surf installed pools in April 3. How many pools is the flexible budget based on? Why? (3) output for the month. This is done so , meaning they can compare The flexible budget for performance reports is always based on the that managers can compare (4) to (6) Therefore, Water Surf'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 su p er 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? As the name suggests, the flexible budget variance is the difference between the (7). and the (8) Since the (9). and the (10) are based on (11) of output, this variance highlights unexpected revenues and expenses that are caused by factors other than (12) 7. Define the volume variance. What causes it? The volume variance is the difference between the (13) and the (14) - The only difference between these two budgets is the (15) - Therefore, the volume variance is caused by differences between (16) 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 O, make sure to enter in a "0". A variance of zero is considered favorable.) Water Surf Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Variance Flexible Budget Actual Volume Variance Master Budget Output units (pools installed) Sales revenue $ 104,000 $ 109,000 87,200 Operating expenses Variable expenses 65,000 71,000 56,800 Fixed expenses 26,000 29.600 29.600 Total operating expenses 6: Data Table Water Surf Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Variance Flexible Budget Actual Volume Variance Master Budget Sales volumne (number of pools installed) $ 104,000 ? $ 109,000 ? $ 87,200 Sales revenue Operating expenses: Variable expenses Fixed expenses $ ? S ? $ 65,000 26,000 7 1,000 29,600 56,800 29,600 Total operating expenses 7: Requirements 1. How many pools did Water Surf originally think it would install in April? 2. How many pools did Water Surf 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. (1) O O actual results indicate flexible budget indicates O master budget indicates (2) O O acutal results indicate flexible budget indicates O master budget indicates (3) O O actual O budgeted O production (4) (5) O apples-to-apples O historical data to current data O industry ratios to their company ratios O O actual revenues and expenses O historical revenues and expenses (6) O O budgeted revenues and expenses O revenues and expenses of competitors O revenues and expenses they would expect to achieve given different volume O revenues and expenses they would expect to achieve given the same volume (9) O (7) O flexible budget O master budget (8) O actual results O master budget actual results master budget (10) O flexible budget O master budget (11) (13) different volumes O the same volume (12) O costs O price O volume flexible budget variance O master budget (14) O O actual results flexible budget Oma (17) O (15) O O O O sales price per unit total fixed costs variable costs per unit volume of units on which they are based (16) O actual and expected fixed costs O actual and expected volume O actual and expected sales prices (18) O OF OU OU (19) (25) O ou (20)O (21) OFF OF ou ou (22) O OF ou (23) O OF ou (24) O OF ou OF ou (26) O OF ou 8. The following is a partially completed performance report for Water Surf $(Click the icon to view the information.) Read the requirements? 1. How many pools did Water Surf originally think they would install in April? The that Water Surf planned to sell pools in April. 2. How many pools did Water Surf actually install in April? The D (2) that Water Surf installed pools in April 3. How many pools is the flexible budget based on? Why? (3) output for the month. This is done so , meaning they can compare The flexible budget for performance reports is always based on the that managers can compare (4) to (6) Therefore, Water Surf'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 su p er 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? As the name suggests, the flexible budget variance is the difference between the (7). and the (8) Since the (9). and the (10) are based on (11) of output, this variance highlights unexpected revenues and expenses that are caused by factors other than (12) 7. Define the volume variance. What causes it? The volume variance is the difference between the (13) and the (14) - The only difference between these two budgets is the (15) - Therefore, the volume variance is caused by differences between (16) 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 O, make sure to enter in a "0". A variance of zero is considered favorable.) Water Surf Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Variance Flexible Budget Actual Volume Variance Master Budget Output units (pools installed) Sales revenue $ 104,000 $ 109,000 87,200 Operating expenses Variable expenses 65,000 71,000 56,800 Fixed expenses 26,000 29.600 29.600 Total operating expenses 6: Data Table Water Surf Flexible Budget Performance Report: Sales and Operating Expenses For the Year Ended April 30 Flexible Budget Variance Flexible Budget Actual Volume Variance Master Budget Sales volumne (number of pools installed) $ 104,000 ? $ 109,000 ? $ 87,200 Sales revenue Operating expenses: Variable expenses Fixed expenses $ ? S ? $ 65,000 26,000 7 1,000 29,600 56,800 29,600 Total operating expenses 7: Requirements 1. How many pools did Water Surf originally think it would install in April? 2. How many pools did Water Surf 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. (1) O O actual results indicate flexible budget indicates O master budget indicates (2) O O acutal results indicate flexible budget indicates O master budget indicates (3) O O actual O budgeted O production (4) (5) O apples-to-apples O historical data to current data O industry ratios to their company ratios O O actual revenues and expenses O historical revenues and expenses (6) O O budgeted revenues and expenses O revenues and expenses of competitors O revenues and expenses they would expect to achieve given different volume O revenues and expenses they would expect to achieve given the same volume (9) O (7) O flexible budget O master budget (8) O actual results O master budget actual results master budget (10) O flexible budget O master budget (11) (13) different volumes O the same volume (12) O costs O price O volume flexible budget variance O master budget (14) O O actual results flexible budget Oma (17) O (15) O O O O sales price per unit total fixed costs variable costs per unit volume of units on which they are based (16) O actual and expected fixed costs O actual and expected volume O actual and expected sales prices (18) O OF OU OU (19) (25) O ou (20)O (21) OFF OF ou ou (22) O OF ou (23) O OF ou (24) O OF ou OF ou (26) O OF ou