PLEASE ANSWER. Also, please check that what I already entered is correct. I need to fill in the full table and I am confused. Thank you!! Why can't you delete a post if NO ONE is answering? Incredible.
The Lasting Balloon Compay produces party balloons that are sokd in multi-pack cases. To folow is the company's performance report in contribution margin format for March: EE (Click the icon to view the performance raport in contribution margin format.) Read the requirements. Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) Management would like to determine the portion of the master budget variance that is (a) due to volume being diferent than originally anticipated, and (b) due to some other unexpected cause. Prepare a flexible budget perfarmance report to address these questions, using the actual sales volume of 57,000 units and the budgeted sales volume of 53,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 48,000 to 67,000 urnits. Begin by completing the actual and master budget columns of the performance report and then the master bucget variances. Then compute the lexible budget column and the remaining varance coumns. (Round all amounts to the nearest whole dollar. For accounts with a 0 balance, make sure to enter "O" in the appropriate column. Label each variance as favorable (F) or unfavorable (U).) The Lasting Balloon Company Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Variance Master Budget Variance Flexible Volume Master Actual Budget Variance Budget 57,000 53,000 Sales volume 190,000]. ]J 169,600[:1000 ] 8420074200 1000 95,400 11000 700001700 Sales revenue Less: Variable expe 74,200 expenses Contribution margin Less: Fixed expenses Operating income 106,400 71,700 34,700 25,400 9300 Requirement 6a. Using the flexible budget performance report you prepared for Requirement 5, answer the following question: How much of the master budget varlance (calculated in Requirement 4) for operating income is due to volume beling higher than expected? The amount of the master budget varlance for operating income due to volume beling higher than expected is $ Requirement 6b. Using the flexible budget perfomance report you prapared for Requirement 5, answer the following question: How much of the master budget variance for variable expenses is due to some cause other than volume? The amunt of the master budget variance for variable expenses due to some cause other than volume is $ Requirement 6c. Using the flexible budget performance report you prepared for Requirement S, answer the following question: What could account for the flexible budget variance for sales revenue? could account for the flexible budget variance for sales revenue. Requirement 6d. Using the flexible budget perfornance report you prepared for Requirement 5, answer the following question: What is thee volurne variance for fixed expenses? Why is it this amount? (Enter a " for any zero amounts) The volume varlance for fixed expenses is $ expenses because because the fexlble budget uses the amount for fixed fixed expenses are The Lasting Balloon Company Actual vs. Budget Performance Report For the Month Ended March 31 Master Master Budget Actual Budget Variance Sales volume (number of cases sold) Sales revenue 57,00053,000 $ 190,600 $ 169,600 ,200 74,200 $ 106,400 $ 95,400 70,000 $ 34,700 $ 25,400 Less: Variable expenses Contribution margin Less: Fixed expenses 71,700 Operating income
