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 |
|
| _100000__units | units | Variances |
| Sales | 850000 |
|
|
| -Var Cost | 675000 |
|
|
| Margin | 175000 |
|
|
| -FC | 150000 |
|
|
| Income |
|
|
|
- A) What is net income for the flexible budget?
- B) What is net income for actual?
- C) What is the total variance?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
