i Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on Phone's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Phone's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Phone's managers thanrihe simple static budget variance. What insights can Phone's managers raw from this performance report? Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the fequirement Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F\Unfavorable (U) input blank.) Phone Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 1 2 3 (1)-(3) (3) - (5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units Sales Revenue For the Month Ended July 31, 2024 2 3 (1)-(3) 4 5 (3) - (5) Sales Budget Flexible Amounts Actual Flexible Volume Static Budget Variance Per Unit Results Budget Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Phone Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit Units 8,000 9,500 11,500 Sales Revenue $ 22 $ 176,000 $ 209,000 $ 253,000 12 96,000 114,000 138,000 Variable Expenses Contribution Margin Fixed Expenses 80,000 95,000 115,000 52,000 28,000 $ 52,000 43,000 $ 52,000 63,000 $ Operating Income 1 Data Table X - * Phone Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 260,000 Variable Expenses 143,200 Contribution Margin 116,800 Fixed Expenses 53,500 $ 63,300 Operating Income i Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on Phone's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Phone's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Phone's managers thanrihe simple static budget variance. What insights can Phone's managers raw from this performance report? Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the fequirement Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F\Unfavorable (U) input blank.) Phone Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 1 2 3 (1)-(3) (3) - (5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units Sales Revenue For the Month Ended July 31, 2024 2 3 (1)-(3) 4 5 (3) - (5) Sales Budget Flexible Amounts Actual Flexible Volume Static Budget Variance Per Unit Results Budget Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Phone Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit Units 8,000 9,500 11,500 Sales Revenue $ 22 $ 176,000 $ 209,000 $ 253,000 12 96,000 114,000 138,000 Variable Expenses Contribution Margin Fixed Expenses 80,000 95,000 115,000 52,000 28,000 $ 52,000 43,000 $ 52,000 63,000 $ Operating Income 1 Data Table X - * Phone Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 260,000 Variable Expenses 143,200 Contribution Margin 116,800 Fixed Expenses 53,500 $ 63,300 Operating Income
