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The Lasting 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:

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The Lasting 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: Requiremonts 4 and 5. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (U.) Management would like to determine the portion of the master budiget 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 60,000 units and the budgeted sales volume of 5B,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 53,000 to 65,000 units. Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Then compute the fexible budget column and the remaining variance columns, (Round all amounts to the nearest whole dollar Label each variance as favorable (F) or unfavorable (U). If the variance is 0 , make sure to enter in a "O". A variance of zero is considered favorable.) Data table Requirement 6 a. Using the flexible budget performance report you prepared for Requirement 5 , answer the folowing question: How much of the master budget variance (calculated in Requirement 4 ) for operating income is due to volume being higher than expected? The amount of the master budget variance for operating income due to volume being higher than expected is Requirement 6b. Using the fexble budget performance report you prepared for Requirement 5 ; answer the following question: How much of the master budget variance for variable expenses is due to some cause other than volume? The amount of the master budget variance for variable expenses due to some cause other than volume is Requirement 6c. Using the flexble budget performance report you prepared for Requirement 5 , answer the following question: What could account for the flexble budget variance for sales revemue? could account for the flexible budget variance for sales revenue. Requirement 6d, Using the flexble budget performance report you prepared for Requirement 5, answer the following question: What is the volume variance for fixed expenses? Why is it this amount? (Enter a "O" for any zoro amounts.) The volume variance for fixed expenses is because the flexble budget uses the amount for fired expenses because fixed expenses are

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