Prepare Fenske's flexible budget performance report. What variance contributed most to the year's results? What caused this variance? Explain what a static budget variance is and how much was it in this problem?

Predicted sales for Fenske Industries for 2018 is 3,500 units at a selling price of $11 per unit. Actual sales, however, were 3,730 units at a selling price of $12 per unit. Variable costs were budted at $4.10 per unit but actual variable costs in total were $14,920. Budgeted fixed costs were 5,000 but actual was 4,800.

You will need input formulas into the applicable cells in Excel for all your calculations so I can see how the totals were calculated. I must be able to see all calculations to earn credit. Do this instead of retying the formulas.

Solution:

Fenske Industries

Flexible Budget Performance Report For the Year Ended December 31, 2018

	Budget Amount Per Unit	Actual Results	Flexible Budget Variance		Flexible Budget	Sales Volume Vriance		Static Budget
Unit

Provide narrative answer below to which variance contributed the most to the year's results and what caused it.