Fulton Company manufactures book bags and has provided the following information for June 2018 EEB (Click the icon to view the information.) Requirements 1. Prepare a flexible budget performance report. (Hint: You will need to calculate the flexible budget amounts for 12,000 units.) 2. As the company owner, which employees would you praise or criticize after you analyze this performance report? Requirement 1. Prepare a flexible budget performance report. (Hint: You will need to calculate the flexible budget amounts for 12,000 units.) (Enter a "O" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank. Enter all amounts as positive values.) Fulton Company Flexible Budget Performance Report For the Month Ended June 30, 2018 2 4 Budget Amounts Per Unit Flexible Budget Variance Sales Volume Variance Actual Flexible Static Results Budget Budget Units Sales Revenue Variable Expenses Fulton Company manufactures book bags and has provided the following information for June 2018: (Click the icon to view the information.) Requirements 1. Prepare a flexible budget performance report. (Hint: You will need to calculate the flexible budget amounts for 12,000 units.,) 2. As the company owner, which employees would you praise or criticize after you analyze this performance report? Amounts Actual Per Unit Results Budget Flexible Volume Static Variance Budget Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Fulton Company manufactures book bags and has provided the following information for June 2018: (Click the icon to view the information.) Requirements 1. Prepare a flexible budget performance report. (Hint: You will need to calculate the flexible budget amounts for 12,000 units.) 2. As the company owner, which employees would you praise or criticize after you analyze this performance report? Requirement 2. As the company owner, which employees would you praise or criticize after you analyze this performance report? 0 A. The sales volume variance for fixed costs most likely is a result of delaying a scheduled overhaul of equipment that altered the fixed expenses in the short term but will increase the company's costs in the long run. Since the engineering department is responsible for fixed costs, the manager of that department would be praised if the variance is unfavorable or criticized if the variance is favorable. O B. The sales volume variance for operating income could be due to the effectiveness of the sales staff, or it could be due to a long period of snow that made it difficult for employees to get to work, bringing work to a standstill. To encourage sales, the sales staff should be praised and to encourage higher production levels, the manager of the production department should be criticized. More information is needed to determine which employees to praise or criticize. As the company owner, you should determine the causes of the variances before praising or criticizing employees. It is especially important to determine whether the variance is due to factors the managers can control. Wise managers use variances to raise questions and direct attention, not to fix blame. The flexible budget variance for fixed costs is most likely due to a change in a cost such as insurance premiums. Since the production department is responsible for fixed costs, the manager of that department would be praised if the variance is unfavorable or criticized if the variance is favorable. C. 0 D. Data Table Actual Results Static Budget 13,000 169,000 65,000 104,000 18,000 86,000 Units 12,000 Sales Revenue 160,000 $ Variable Expenses Contribution Margin Fixed Expenses Operating Income 61,500 98,500 16,500 82,000 $ Print Done