Question
Business Solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. The $181,560 budgeted expenses include $123,000 in variable expenses for desks
Business Solutions's second-quarter 2018 fixed budget performance report for its computer furniture operations follows. The $181,560 budgeted expenses include $123,000 in variable expenses for desks and $18,560 in variable expenses for chairs, as well as $40,000 fixed expenses. The actual expenses include $41,500 fixed expenses. List fixed and variable expenses separately.
Fixed Budget | Actual Results | Variances | ||||||||||
Desk sales (in units) | 150 | 156 | ||||||||||
Chair sales (in units) | 58 | 66 | ||||||||||
Desk sales | $ | 199,500 | $ | 205,920 | $ | 6,420 | F | |||||
Chair sales | 32,480 | 37,950 | 5,470 | F | ||||||||
Total expenses | 181,560 | 190,880 | 9,320 | U | ||||||||
Income from operations | $ | 50,420 | $ | 52,990 | $ | 2,570 | F | |||||
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.
Flexible Budget Performance Report
For Quarter Ended June 30
Flexible Budget...........Actual Results.................Variance......................Fav.Unf.
Desk Sales
Chair Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Income from Operations
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