A Requirements 1. What is the budgeted sales price per unit? 2. What is the budgeted variable expense per unit? 3. What is the budgeted fixed cost for the period? 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated, and (b) due to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 63,500 units and the budgeted sales volume of 59,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 54,000 to 73,500 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other than volume? What could account for the flexible budget variance for sales revenue? d. What is the volume variance for fixed expenses? Why is it this amount? Print Done Homework: Chapter 10 Homework Save Score: 0.14 of 3 pts 7 of 9 (9 complete) HW Score: 84.16%, 16.83 of 20 pts %E10-25A (similar to) i Data Table The Blowing Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performand (Click the icon to view the performance report in contribution margin format.) Read the requirements. The Blowing Balloon Company Actual vs. Budget Performance Report For the Month Ended March 31 The Blowing Balloon Company Flexible Budget Performance Report For the Month Ended March 31 Mast Budg Varian Flexible Master Budget Master Actual 63,500 59,000 Sales volume (number of cases sold) Flexible Budget 63,500 185700 Volume Variance 4,500 Budget Actual Variance 63,500 OF 1902004500 U 100500 Master Budget 59,000 Budget Variance 4,500 Sales volume F F Sales revenue $ 190,200 $ 100,500 165,200 88,500 Sales revenue 165200 88500 Less: Variable expenses LIF Less: Variable expenses Contribution margin Less: Fixed expenses $ Contribution margin 76700 89700 74700 CCC Eue 89,700 $ 74.700 15,000 $ 76,700 73,000 3,700 Less: Fixed expenses $ 73000 Operating income 15000 3700 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. A Requirements 1. What is the budgeted sales price per unit? 2. What is the budgeted variable expense per unit? 3. What is the budgeted fixed cost for the period? 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the master budget variance that is (a) due to volume being different than originally anticipated, and (b) due to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 63,500 units and the budgeted sales volume of 59,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 54,000 to 73,500 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other than volume? What could account for the flexible budget variance for sales revenue? d. What is the volume variance for fixed expenses? Why is it this amount? Print Done Homework: Chapter 10 Homework Save Score: 0.14 of 3 pts 7 of 9 (9 complete) HW Score: 84.16%, 16.83 of 20 pts %E10-25A (similar to) i Data Table The Blowing Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performand (Click the icon to view the performance report in contribution margin format.) Read the requirements. The Blowing Balloon Company Actual vs. Budget Performance Report For the Month Ended March 31 The Blowing Balloon Company Flexible Budget Performance Report For the Month Ended March 31 Mast Budg Varian Flexible Master Budget Master Actual 63,500 59,000 Sales volume (number of cases sold) Flexible Budget 63,500 185700 Volume Variance 4,500 Budget Actual Variance 63,500 OF 1902004500 U 100500 Master Budget 59,000 Budget Variance 4,500 Sales volume F F Sales revenue $ 190,200 $ 100,500 165,200 88,500 Sales revenue 165200 88500 Less: Variable expenses LIF Less: Variable expenses Contribution margin Less: Fixed expenses $ Contribution margin 76700 89700 74700 CCC Eue 89,700 $ 74.700 15,000 $ 76,700 73,000 3,700 Less: Fixed expenses $ 73000 Operating income 15000 3700 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check
