format for October The Outrageous Balloon Company produces party balloons that are sold in mult-pack cases. Following is the company's performance report in contribution margin Click the icon to view the performance report in contribution margin format) Read the requirements Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is > Part 1 of 8 20 points O Points: 0 of 2 @ Requirements 1. What is the budgeted sales price per unit? uirements 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 61,500 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 71,500 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: How much of the master budget variance calculated in Requirement 4) for operating income is due to volume being higher than expected? 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? a. b. c. 1 Requirements 1. What is the budgeted sales price per unit? quirements 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 61,500 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 71,500 units 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: 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? a. c. Data table A B D 1 The Outrageous Balloon Company Actual vs. Budget Performance Report 2 3 For the Month Ended October 31 Master Budget Variance Master Budget Actual 4 Sales volume (number of cases 5 sold) 6 Sales revenue 59,000 61,500 $ 218,700 $ 194,700 7 Less: Variable expenses 8 Contribution margin 87,700 $ 131,000 $ 76,700 118,000 65,000 9 Less: Fixed expenses 66,100 10 Operating income $ 64,900 $ 53,000