Create an Excel spreadsheet to prepare a summary performance report that identifies flexible-budget and sales activity variances.

David Campbell Tax Services has asked you to prepare a summary performance report identifying its flexible-budget and sales-activity variances. The background data for the summary performance report appears in the fundamental assignment.

- Static Budget Data: Sales, 3,500 clients at $350 each; variables costs $150,000

- Actual Results at actual prices: sales 3,000 clients at $360 per client; variable costs, $920,000; fixed costs, $159, 500

Fill in the Blanks:

-Static-budget income

-Variances

-Sales-Activity Variances

-Flexible Budget Variances

-Actual income

1. What caused the flexible-budget variance for sales?

2. What was the change in actual income compared to the income calculated in the static budget?

3. Can the amount in question 2 be explained by the flexible-budget and sales activity variances? Explain.

	Actual Results at Actual ACtivity	Flexible-Budget Variances
Clients
Sales
Variable Costs
Contribution Margin
Fixed Costs
Operating Income