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Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $3.10 . Part 2 Requirement 2. What is
Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $3.10 . Part 2 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $1.70 . Part 3 Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $69,000 . Part 4 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 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 units and the budgeted sales volume of units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from to units. Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Then compute the flexible budget column and the remaining variance columns. (Round all amounts to the nearest 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 of zero is considered favorable.) The Flowing Balloon Company Flexible Budget Performance Report For the Month Ended August 31 Flexible Master Budget Flexible Volume Master Budget Actual Variance Budget Variance Budget Variance Sales volume 55,000 0 F 55,000 3,000 F 52,000 3,000 F Sales revenue $184,200 F F $161,200 F Less: Variable expenses 100,900 U U 88,400 U Contribution margin 83,300 F F 72,800 F Less: Fixed expenses 70,400 U F 69,000 U Operating income $12,900 F F $3,800 F
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