The 2 Relax inatated eleven poole during March. Prepare an income statement performance report for Time Relax Muthing the below magalite Click the icon to view the table) Aarume that the actual sales prica per post a $12.000. actus variable expens tot 3,000, and stud food pers are $10,000 March. The manut tutput was prepared win the tutoweg met vrience of 3.00 per fed expenses of $20.500 per month and anticipated sales volume of ten pools at $52.400 per pool Requirement 1. Compute the sales volume variance and forble budget variance. Une these vinces to explain to Tome 2 Helsmanagement wy Mary's cering income for trompeting nene han inte at Income Statement Performance Report Month Ended Maren Flesti Bug AR Flexible budget Volume Actual Prices Output Unie Variance Output unit Sales revenue Variable expenses Actua Nube Variance Total expenses Requirement Computs the volume variance and flexible budget variant Use these variances to explain to Time Rex's management why Marchis operating income trompeting income town in the wallet Sve Varapen Total expenses Operating con Use the sales volume variance and flexible budget variance to explain to Time 2 Relax's management why March's operating income differs from senting income shown in the state budge Time 2 Relaksactus operating income the static budget. There are two primary reason 1. Time 2 Relaxactly rated M pool han expected. This operating income by 2. Time 2 Relax's actual expenses to instal 15 pools were than they should have been to install 11 pools. This Flexible budget variacement Time Time 9 of 11 (8 completo) Data Table bols during March. Prepare mtable.) ce per pool is $12,400, act month, and anticipated sale! e following assumptions variance and flexible budd ng income shown in the stat (5) Time 2 Relax Pools Income Statement Performance Report Month Ended June 30 (1) (2) (3) (13) Flexible Actual Budget Results Flexible for Actual at Actual Budget Number of Prices Variance Output Units 10 -0 10 (4) ( 35) Sales Static Volume Variance 2F (Master) Budget B eget and flexible budget variand Output units (pools installed) mg income was $96.000 Sales revenue Variable expenses lled pool than ex $121,000 83.000 22.000 $1,000 F 3,000 U 2.000 U 524.000 F 16,000 U -0 $120,000 80.000 20,000 64,000 20,000 Kalax did a Fixed expenses enses to install 11 pools were Print Done arany number in the input fi 9 of 11 (B complete) 0 Data Table ring March. Prepare .) pool is $12,400, act and anticipated sale Number of he fobowi at Actual Prices 10 Budget Variance Volume Variance 2F Output Units 10 (Master) Budget nce and flexible budg -0- Output units (pools installed) Sales revenue ng Income $121,000 595,000 Variable expenses $1,000 F 3.000 U 2,000 U 83,000 22,000 $120,000 80,000 20,000 $24,000 F 16,000 U 54.000 20,000 Fixed expenses Total expenses 5,000 U 100,000 16,000 U 84,000 105,000 $ 16,000 $4,000 U $ 20,000 $ 8,000 F 512,000 Operating income exible budget variance dget Flexible budget variance, $4,000 U Sales volume variance, $8,000 F he was pool than exi Static budget variance, $4,000 F Budgeted sale price is $12,000 per pool, budgeted variable expense is $8,000 per pool, and budgeted total monthly fixed expenses are $20,000. Relax dida install 11 pools were
