The Creative Balloon Company produces party balloons that are sold in multi-pack cases. Following is the company's performance report in contribution margin format for August. (Click the icon to view the performance report in contribution margin format) Read the requirements Requirements X Requirement 1. What is Data Table - X The budgeted sales pria Requirement 2. What is B D 1 The budgeted variable 2 The Creative Balloon Company Actual vs. Budget Performance Report For the Month Ended August 31 Requirement 3. What is 3 The budgeted fixed cost Master Budget Variance 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 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 62,000 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 67.000 units 6. Using the flexible budget performance report you prepared for Requirement 5 answer the following questions: a. 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? C. What could account for the flexible budget variance for sales revenue? d. What is the volume variance for fixed expenses? Why is it this amount? Master Budget 4 Actual Requirements 4 and 5. different than originally a Use the original budget a Sales volume (number of cases 5 sold) 59,000 188,800 6 Sales revenue Begin by completing the dollar. Label each varian 106,200 7 Less: Variable expenses 8 Contribution margin 9 Less: Fixed expenses 62,000 S 212.800 $ 116,700 S 96,100 $ 72.300 $ 23.800 $ 82.600 71.000 11 600 10 Operating income This question is comple Print Done Print Done Help Me Solve TV lon Type here to search 3:14 AM Requirements - X D B The Creative Balloon Company aal vs. Budget Performance Report For the Month Ended August 31 Master Budget Variance Master Budget 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 62,000 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 67,000 units flexible budget performance report you prepared for Requirement 5 answer the following questions a. 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? C. What could account for the flexible budget variance for sales revenue? d. What is the volume variance for fixed expenses? Why is it this amount? Actual er of cases 6. Using the 59,000 188,800 106.200 ses 62,000 $ 212 800 $ 116.700 $ 96,100 72.300 S 23 800$ 82.600 es 71,000 11.600