PART1-8

Requirements 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 comprehensive budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the comprehensive budget variance that is (a) due to volume being different than originally anticipated and (b) Gue to some other unexpected cause. Prepare a flexible budget performance report to address these questions, using the actual sales volume of 59,000 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 etratnhoe fram 17 onn in 7A non unite The Everlasting Balloon Company produces party balloons that are sold in mult-pack cases. Following is the company's performance report in contribution margin format for December: View the performance report in contribution margin format. Read the reguirements. Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is Performance report in contribution margin format Performance report in contribution margin format sales volume of 59,000 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 74,000 units. 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: a. How much of the comprehensive budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the comprehensive 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? d. What is the volume variance for fixed expenses? Why is it this amount? Requirements 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 comprehensive budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the comprehensive 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 59,000 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 etratnhase fram 17ann in 71nnn wnite