The Precious Balloon Company produces party balloons that are sold in multi-pack cases. To follow is the company's performance report in contribution margin format for May :

Requirements 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 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 58,000 units and the budgeted sales volume of 56,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 51,000 to 63,000 units.

Begin by completing the actual and master budget columns of the performance report and then the master budget variances. Then compute the flexible budget column and the remaining variance columns. (Round all amounts to the nearest whole dollar. For accounts with a 0 balance, make sure to enter "0" in the appropriate column. Label each variance as favorable (F) or unfavorable (U).)

Data Table The Precious Balloon Company Actual vs. Budget Performance Report For the Month Ended May 31 Master Master Budget Budget Variance Actual Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses 56,000 $ 161,000$ 140,000 72,800 $ 74,700 $ 67,200 64,000 $ 9,900 3,200 58,000 86,300 64,800 Operating income Print Done Requirement 1. What is the budgeted sales price per unit? The budgeted sales price per unit is $ Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is$ Requirement 3. What is the budgeted fixed cost for the period? The budgeted fixed cost for the period is $ 2.50 1.30 64000 The Precious Balloon Company Flexible Budget Performance Report For the Month Ended May 31 Flexible Budget Variance Master Budget Variance Volume Flexible Master Variance Actual Budget Budget 56000 140000 72800 67200 64000 3200 58000 161000 86300 74700 64800 9900 Sales volume Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income Requirement 6a. Using the flexible budget performance report you prepared for Requirement 5, answer the following 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 flexible 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 sorme cause other than volume? The amount of the master budget varianoe for variable expenses due to some cause other than volume is $ Requirement 6c. Using the flexible budget performance repor you prepared for Requirement 5, answer the folkowing question: What could account for the flexible budget variance for sales revenue? could account for the flexible budget variance for sales revenue. Requirement 6d. Using the flexible 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 zero amounts.) The volume variance for fixed expenses is $ expense amount for fixed because the flexible budget uses the s because fixed expenses are