Snells is a retail department store. The following cost-volume relationships were used in developing a flexible budget for the company for the current year:

Instructions:

Prepare a schedule comparing the actual results with flexible budget amounts developed for the actual sales volume of $10,500,000. Organize your schedule as a partial multiple-step income statement, ending with operating income. Include seperate columns for (1) flexible budget amounts, (2) actual amounts, and (3) any amount over (under) budget. Use the cost-volume relationships given in the problem to compute the flexible budget amounts. ("Under Budget" should be indicated by a minus sign.)

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Chapter 23 5. 10.oo pointts 1000 points Snells i fexible budget for the company for the current year is a retail department store. The folowing cost-volume relationships were used in developing a Variable Yearly Fixed Expenses per Sales Dollar Expenses $ 0.600 Cost of merchandise sold Selling and promotion expense Building occupancy expense Buying expense Delivery expense Credit and collection expense Administrative expense $ 210,000 186,000 150,000 11,000 72,000 0.082 0.022 0.041 0.008 0.002 0.003 531,000 Totals $ 1,260,000 0.758 Management expected to attain a sales level of $12 million during the current year. At the end of the year, the actual results achieved by the company were as follows: Net sales Cost of goods sold Selling and promotion expense Building occupancy expense Buying expense Delivery expense Credit and collection expense $10,500,000 6,180,000 1,020,000 420,000 594,000 183,000 90,000 564,000 Administrative expense Instructions Prepare a schedule comparing the actual results with flexible budget amounts developed for the actual sales volume of $10,500,000. Organize your schedule as a partial multiple-step income statement, ending with operating income. Include separate columns for (1) fexible budget amounts, (2) actual amounts, and (3) any amount over (under) budget. Use the cost-volume relationships given in the problem to compute the fexible budget amounts. ("Under Budget" should be indicated by a minus sign.)