The Blowing Baloon Company produces party balloons that are sold in mutipack cases. Follow is the company's performance report in contulion margin format for October Click the icon to the performance report in contribution margin format Read the requirements Une per Requirements. What is the budgeted food cost for the period? The budgeted feed cost for the period is 563.000 Requirements 4 and 5. Compute the master budgol variance. De sure to indicate each vanane stroke (F) untevorable (0) Manager would like to determine the portion of the master bufget variante de la volum Daing denrent an originally anticipated, and (b) due to some other nexpected cute. Prepare a faible bridget performance report to address these questioning te dual volume of 6.500 unts and the budgled savu of 69,000 units. Use the original budget assumptions for sale price, vidio con perust, indfred cols, memng the relevant rege watches from 51.000 to 78.500 unit. Begin by completing the actuand master budget cohomna of the performance report and then the master bordpet variances. The compute the flexible budget count and the remaining verance column (Bone martuar wowotar Lisbet each Varance as favorable or infavorable Ulf everance, make sure to let Act 200 contro trable) The Blowing Balloon Company Flexible Budget Performance Report For the Month Ended October 31 Flexible Master Budget Flexible Volume Master Budget Actual Variance Budget Variance Budget Variance les volume 174400 Saree Lors: Variable opens Corbution margh Frode penes Opere come DDDD B D 1 N The Blowing Balloon Company Actual vs. Budget Performance Report For the Month Ended October 31 3 Master Budget Master Budget Variance Actual 4 Sales volume (number of cases 5 sold) 65,500 59,000 6 Sales revenue $ 178,400 $ 153,400 7 Less: Variable expenses 98,500 88,500 64,900 8 Contribution margin $ 79,900 $ 64,300 63,000 9 Less: Fixed expenses $ 15,600 $ 1,900 10 Operating income 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 65,500 units and the budgeted sales volume of 59,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 54,000 to 75,500 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? What could account for the flexible budget variance for sales revenue? What is the volume variance for fixed expenses? Why is it this amount? a. c. d
