E10-25A (similar to) The Lasing Bacon Company reduces party balloons that are sold in multipack cases. To follow is the company's performance report in contribution margin format for March m (lk the icon to view the performance report in contribution margin format) 0 Requirements 1 Data Table What is the budgeted sales price per unit? 2. What is the budgeted variable expense per unt? 1. What is the budgeted led cost for the period? 4. Compute the master budget variances. Be sure to indicate each variance as favorable (F) or unfavorable (0) 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 us Prepare a texible budget performance report to address these questions using the actual sales volume of 56,500 units and the budgeted es volume of 54,000 units. Use the original budget assumptions for sales price variatie cost per unit, and fxed costs, assuming the relevant range stretches from 49.000 to 66,500 units 8. Using the floutie budget performance report you prepared for Requirements, 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? h How much of the master budget variance for variable expenses is due to some cause other than volunte? What could account for the flexible budget variance for sales revenue? d What is the one wariance for fed expenses? Why is it this amount A B D 1 The Lasting Balloon Company 2 Actual vs Budget Performance Report 3 For the Month Ended March 31 Master Master Budget 4 Actual Budget Variance 5 Sales volume number of cases sold) 56,500 54,000 8 Sales revenue $ 195,500 5 172,800 7 Less: Variable expenses 107 200 97.200 8 Contribution margin $ 88,600 5 75.000 9.Less: Fixed expenses 54 300 63.000 10 Operating income $ 24,300 $ 12,600 Print Done Print Done parts emaining Clear All E: (Click the icon to view the performance report in contribution margin format.) i 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 56,500 units and the budgeted sales volume of 54,000 units. Use the original budget assumptions for sales price, variable cost per unit, and fixed costs, assuming the relevant range stretches from 49,000 to 66,500 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? d. What is the volume variance for fixed expenses? Why is it this amount? a. C. Print Done Data Table A B D 1 The Lasting Balloon Company Actual vs. Budget Performance Report 2 3 For the Month Ended March 31 Master Budget Variance Master 4 Actual Budget 5 Sales volume (number of cases sold) 56,500 54,000 6 Sales revenue $ 195,800 $ 172,800 7 Less: Variable expenses 107,200 97,200 8 Contribution margin $ 88,600 $ 75,600 9 Less: Fixed expenses 64,300 63,000 10 Operating income $ 24,300 $ 12,600
