Question
Bay City Companys fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses
Bay City Companys fixed budget performance report for July follows. The $440,000 budgeted total expenses include $300,000 variable expenses and $140,000 fixed expenses. Actual expenses include $130,000 fixed expenses. Fixed Budget Actual Results Variances Sales (in units) 6,000 4,900 Sales (in dollars) $ 480,000 $ 436,100 $ 43,900 U
Total expenses 440,000 410,000 30,000 F
Income from operations $ 40,000 $ 26,100 $ 13,900 U
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.
Flexible Budget | actual results | variances | fav/unf | |
sales | ||||
Variable expenses | ||||
contribution margin | ||||
fixed expenses | ||||
income from operations |
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