Question:

Requirements + Data Table /Budget:

Cellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,000, 8,500, and 10,500 units. The static budget was based on expected sales of 8,500 units. The company sold 10,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) : (Click the icon to view the income statement.) Read the requirements. Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0" for any zero balances. For any S0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) 5 Cellular Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 23. (1)-(3) Flexible Actual Budget Flexible Results Variance Budget 4 (3) - (5) Sales Budget Amounts Per Unit Volume Static Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Choose from any list or enter any number in the input fields and then click Check Answer. A Requirements A Data Table - X atior output udget 1. Prepare a flexible budget performance report for July, 2. What was the effect on Cellular's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Cellular's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Cellular's managers than the simple static budget variance. What insights can Cellular's managers draw from this performance report? fable Cellular Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue 269,500 Variable Expenses 141,600 Contribution Margin 127,900 58,000 Fixed Expenses 69,900 Operating Income Print Done Print Done Static Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit 7,000 $ 25 $ 175,000 $ 91,000 Budget Units Sales Revenue 8,500 212,500 $ 110,500 10,500 262,500 136,500 Variable Expenses Contribution Margin 84,000 57,000 102,000 57,000 45,000 $ 126,000 57,000 Fixed Expenses $ 27,000 $ 69,000 Operating Income