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of $ 5 4 , 5 0 0 . The budgeted selling price was $ 1 1 6 per tire. Actual results in August 2
of $ The budgeted selling price was $ per tire. Actual results in August were tires manufactured and sold at a selling price of $ per tire. The actual total variable costs were
$ and the actual total fixed costs were $
Requirement Prepare a performance report with a flexible budget and a static budget.
Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. For variances with a $ balance, make sure
to enter in the appropriate field. If the variance is zero, do not select a label.
Requirement Comment on the results in requirement
The total staticbudget variance in operating income is There is total flexiblebudget
variance and
salesvolume variance. The salesvolume variance arises solely because actual units
manufactured and sold were
than the budgeted units. The flexiblebudget variance in operating income is due
primarily to the
in unit variable costs.
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