Homework: Homework Chapter 10 Score: 2.03 of 4 pts 4 of 5 (5 complete) Xx E10-38B (similar to) The Blowing 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 margin format.) Read the requirements. Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $ 3.40 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.40 Requirement 3. What is the budgeted fixed cost for the period? Enter any number in the edit fields and then click Check Answer. parts 3 remaining Clear All Homework: Homework Chapter 10 Score: 2.03 of 4 pts 4 of 5 (5 complete) Requirements Data Table 3 For the Month Ended March 31 Master Budget Variance 4 Master Budget Actual 5 Sales volume (number of cases sold) 60,500 58,000 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 60,500 units and the budgeted sales volume of 58,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 53,600 to 70,500 units 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. 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? 6 Sales revenue $ 222,200 $ 197,200 93,200 81,200 7 Less: Variable expenses 8 Contribution margin 9 Less: Fixed expenses $ 129,000 $ 116.000 66,600 65,000 10 Operating income $ 62,400 $ 51,000 Print Done Print Done remaining Homework: Homework Chapter 10 Score: 2.03 of 4 pts 4 of 5 (5 complete) Requirements Data Table A B D 1 WN The Blowing Balloon Company Actual vs. Budget Performance Report For the Month Ended March 31 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 60,500 units and the budgeted sales volume of 58,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 53,000 to 70,500 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 Master Budget Variance 5 Sales volume (number of cases sold) Master Actual Budget 60,500 58,000 $ 222,200 $ 197,200 Sales revenue a. 7 Less: Variable expenses 93,200 81,200 Print Done Print Done remaining
