Homework: Chapter 10 Homework Part 4 of 8 Question 7 > Score: 0.19 of 4 points Save The Flowing Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format for Augusti 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 $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense por unit is $ 1.70 Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $ 65,000 Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (L.) Management would like to determine the portion of the master budget variance that is (adue to volume bein 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 55.000 units and the budgeted sales volume of 52,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 47,000 to 65,000 units. Begin by completing the actual and master budget columns of the performance report and then the master budget varlances. Then compute the flexible budget column and the remaining variance columns. (Round all amounts to the nearest whole dollar. Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "0". A variance of zero is considered favorable.) The Flowing Balloon Company Flexible Budget Performance Report For the Month Ended August 31 Choose from any list or enter any number in the input fields and then click Check Answer Video Help Me Solve This Get More Help Clear All Check Answer The Flowing Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format for Augusti 2. Click the icon to view the performance report in contribution margin format.) Read the requirements - 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 55,000 units and the budgeted sales volume of 52,00 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 47,000 to 65,000 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 al amounts to the nearest whole dollar, Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "O" A variance of zero is considered favorable.) The Flowing Balloon Company Flexible Budget Performance Report For the Month Ended August 31 Flexible Budget Flexible Volume Budget Actual Variance Budget Variance Budget Varianco Master Master Sales volume Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income Choose from any list or enter any number in the input fields and then click Check Answer. Help Me Solve This Video Get More Help Clear All Check Answer The Flowing Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in cont (Click the icon to view the performance report in contribution margin format) Data Table Read the requirements . B C D different than original units. Use the original Begin by completing whole dollar. Label e - X 1 1 Requirements 2 The Flowing Balloon Company Actual vs. Budget Performance Report For the Month Ended August 31 3 Master Budget Variance Master Budget 4 Actual Sales volume (number of cases 5 sold) 6 Sales revenue 1. What is the budgeted sales price per unit? 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 55,000 units and the budgeted sales volume of 52,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 47,000 to 65,000 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? c. What could account for the flexible budget variance for sales revenue? What is the volume variance for fixed expenses? Why is it this amount? Sales volume 55,000 52,000 $ 180,200 $ 161,200 99,400 88,400 s 80,800 $ 72 800 66,200 55,000 s 14,600 $ 7,800 7 Less: Variable expenses 8 Contribution margin 9 Less: Fixed expenses Sales revenue 10 Operating income Less: Variable expert Contribution margin Less: Fixed expense Operating income Print Done Choose from any list d Help Me Solve Clear All Check
