How to reproduces multicolore bilo otion med for weddings and other events. The comowy od 70.000 bottom and its com carining noorte was how Click the contowe acha income statement The company's flexible budget income statement for Julyfoliowe Click the lowest budget comment Read the requirement For the month ended July 31 Actual Flexible Budget Variance Flexible Budget Volume Variance Master Bu Oututuna Sarv Variable Cost of good old Samos con esposa Lully copone Fred expenser bowing Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during July, and its actual operating income wanasto (Click the icon to view the actual income statement) The company's flexible budget income statement for Julyfollows: (Click the icon to view the flexible budget income statement) Read the requirements Variable expenses Cost of goods sold Sales commissions expense Utility expense Fixed expenses Salary expense Depreciation expense Ront expense Utility expense Total expenses Operating income Month Ended July 31 $ Sales revenue .. 211,100 Variable expenses: $ 87,700 Cost of goods sold Sales commissions 23,250 3,500 Utility expense Fixed expenses: Salary expense Depreciation expense I Rent expense 32,300 20,000 7,350 6,000 Utility expense $ 180,100 Total expenses..... $ 31,000 Operating income Data Table 65,000 70,000 75,000 $ 188,500 $ 203,000 Su 217,500 $ 2.90 1.25 93,750 0.30 Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense 81,250 19,500 3,250 87,500 21,000 3,500 0.05 22,500 3,750 30,000 20,000 30,000 *20,000 8,000 6,000 $ 168,000 $ $ 20,500 $ "33,000 23,000 12,000 6,000 8,000 6,000 Total expenses 176,000 $ 194,000 Operating income 27,000 $ 23,500 Requirements -X 1. Prepare an income statement performance report for July. Note: The master budget was based on expected sales volume of 65,000 bubble kits. 2. What accounts for most of the difference between actual operating income and master budget operating income? 3. What is Blowing Bubbles' master budget variance for operating income? Explain why the income statement performance report provides Blowing Bubbles' managers with more useful information than the simple master budget variance. What insights can Blowing Bubbles' managers draw from this performance report? Requirements -X 1. Prepare an income statement performance report for July. Note: The master budget was based on expected sales volume of 65,000 bubble kits. 2. What accounts for most of the difference between actual operating income and master budget operating income? 3. What is Blowing Bubbles' master budget variance for operating income? Explain why the income statement performance report provides Blowing Bubbles' managers with more useful information than the simple master budget variance. What insights can Blowing Bubbles' managers draw from this performance report
