please answer requirements 4 and 5, and 6 (a,b,c,d) bold answers
pot - Requirements e er bud due to or sa budge ble Flexi 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 master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) 5. Management would like to determine the portion of the master 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 53,000 units and the budgeted sales volume of 51,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 46,000 to 58,000 units 6. Using the flexible budget performance report you prepared for Requirement 5, answer the following questions: How much of the master budget variance (calculated in Requirement 4) for operating income is due to volume being higher than expected? b. How much of the master budget variance for variable expenses is due to some cause other than volume? 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? F ime V enue a. 30 iable 00 Son m 100 bd ex C. 400 Inco 900 Print Done - i Data Table volume being ume of 51,000 N re es B D Je nearest m ero 2. The Great Balloon Company Actual vs. Budget Performance Report For the Month Ended May 31 3 Master Budget Variance Master 4 Actual Budget 5 Sales volume (number of cases sold) 53,000 51,000 6 Sales revenue $ 150,500 $ 127,500 7 Less: Variable expenses 68,100 56,100 8 Contribution margin $ 82,400 $ 71,400 67.900 67,000 9 Less: Fixed expenses $ 14,500 $ 4,400 10 Operating income Print Done Requirements 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorab different than originally anticipated, and (b) due to some other unexpected cause. Prepare a flexible budget performance report units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range st Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Th whole dollar. Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "0". A variance The Great Balloon Company Flexible Budget Performance Report For the Month Ended May 31 Flexible Flexible Volume Master Budget Variance Master Budget Variance Actual Budget Variance 53000 Sales volume Sales revenue Budget 51000 2000 150500 127500 23000 68100 56100 12000 Less: Variable expenses Contribution margin Less: Fixed expenses 82400 67900 71400 11000 67000 900 Choose from any list or enter any number in the In
