Data Table The Great Balloon Company Actual vs. Budget Performance Report For the Month Ended March 31 Master Budget Master Variance Actual Budget Sales volume (number of cases sold) 59,500 57,000 $ 211,800 $193,800 Sales revenue 129,700 119,700 Less: Variable expenses Contribution margin 82,100 $ 74,100 67,600 66,000 Less: Fixed expenses 14,500 $ 8,100 Operating income The Great Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performance report in contribution margin format for March: Click the icon to view the performance report in contribution marqin format.) Read the reguirements Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $ Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ Requirement 3. What is the budgeted fixed cost for the periad? The budgeted fixed cost for the period is $ Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance that is (a) due to volume being different than originally anticipated, and (b) due s favorable (F) or unfavorable (U.) Management would like to determine the portion of the master budget variance some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume f 59,500 units and the budgeted sales volume of 57,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 52,000 too 74,500 units. Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Then compute the flexible budget column and the remaining variance columns. (Round all amounts to the nearest whole dollar. For accounts with a 0 balance, make sure to enter "0" in the appropriate column. Label each variance as favorable (F) or unfavorable (U).) The Great Balloon Company Flexible Budget Performance Report For the Month Ended March 31 Flexible Master Budget Flexible Volume Master Budget Actual Variance Budget Variance Budget Variance Sales volume Sales revenue Flexible Budget Performance Report For the Month Ended March 31 Flexible Master Budget Flexible Volume Master Budget Budget Budget Variance Actual Variance Variance Sales volume Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income Requirement 6a. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? The amount of the master budget variance for operating income due volume being higher than expected is S Requirement 6b. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: How much of the master budget variance for variable expenses other than volume? due to some cause The amount of the master budget variance for variable expenses due to some cause other than yolume is $ Requirement 6c. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: What could account for the flexible budget variance for sales revenue? Could account for the flexible budget variance r sales revenue Requirement 6d. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: What is the volume variance for fixed expenses? Why is it this amount? (Enter a "0" for any zero amounts.) The volume variance for fixed expenses is $ because the flexible budget uses the amount for fixed Requirement 6d. Using the flexible budget perfomance report you prepared for Requirement 5, answer the following question: What is the volume variance for fixed expenses? Why is it this amount? (Enter a "0" for any zero amounts.) The volume variance for fixed expenses is $ because the flexible budget uses the amount for fixed expenses because fixed expenses are
