Question
Santana Company produced and sold 100,000 units of its product in July. For the level of production achieved in July, the budgeted amounts were: sales,
Santana Company produced and sold 100,000 units of its product in July.
For the level of production achieved in July, the budgeted amounts were: sales, $850,000; variable costs, $675,000; and fixed costs, $150,000.
July actual financial results are: sales, $837,500; variable costs, 656,250; and fixed costs, $150,000.
Prepare a flexible budget performance report for July.
|
| Flexible | Flexible | |
|
| Budget | Actual | Budget |
|
| _____units | units | Variances |
| Sales |
|
|
|
| -Var Cost |
|
|
|
| Margin |
|
|
|
| -FC |
|
|
|
| Income |
|
|
|
-What is net income for the flexible budget?
-What is net income for actual?
-What is the total variance?
-What is net income for the master budget?
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
