The following data were collected by Bemidji Co. for the month of June:

Static budget data:
Sales		12,000	units @ 40/unit
Variable costs	$	29.00	per unit
Total fixed costs	$	25,200
Actual results:
Sales		13,200	units @ $39/unit
Variable costs	$	31.20	per unit
Total fixed costs	$	24,000

Required:

1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

The following data were collected by Bemidji Co. for the month of June:

Static budget data:
Sales		12,000	units @ 40/unit
Variable costs	$	29.00	per unit
Total fixed costs	$	25,200
Actual results:
Sales		13,200	units @ $39/unit
Variable costs	$	31.20	per unit
Total fixed costs	$	24,000

Required:

1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

BEMIDJI COMPANY
Static Budget Performance Report
For the Month Ended June 30
	Actual	Flexible Budget Variance		Flexible Budget	Sales Volume Variance		Static Budget	Static Variance
Sales (units)
Revenue
Variable expenses
Contribution margin
Fixed expenses
Income