Requirements 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 56,500 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 66,500 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? c. 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? a. Print Done The Blowing Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performance report in contribution margin format for July (Click the icon to view the performance report in contribution margin format.) Read the requirements. 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 Blowing Balloon Company i Data Table Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Flexible Volume Variance Budget Variance Master Budget A B Master Budget 1 1 Variance Actual 56500 2 The Blowing Balloon Company Actual vs. Budget Performance Report For the Month Ended July 31 Sales volume 3 3 Sales revenue 191600 76100 Master Budget Varlance Master Budget 4 Actual Less: Variable expenses Contribution margin Less: Fixed expenses 1155001 72300 169,600 43200 Operating income 5 Sales volume (number of cases sold) 56,500 53,000 6 Sales revenue $ 191,600 $ 7 Less: Variable expenses 76,100 63,600 & Contribution margin S 115,500 $ 106,000 9 Less: Fixed expenses 72,300 71,000 S 10 Operating income 43,200 S 35,000 Choose from any list or enter any number in the input fields and then click Check Answer. ? 4 parts remaining Clear All