Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,300 budgeted expenses include $119,880 in variable expenses for desks and $21,420 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,200. Fixed Budget Actual Results Variances Desk sales (in units) 148 154 63 71 Chair sales (in units) Desk sales Chair sales Total expenses $ 196,840 36,540 177,300 $ 203,280 42,245 186,520 $ 6,440 F 5,705 F 9,220 U Income $ 56,080 $ 59,005 $ 2,925 F Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed expenses Income BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance Favorable/Unfavorable $ 204,820 $ 203,280 $ 1,540 Favorable 41,180 42,245 1,065 Favorable 148,880 149,320 440 Unfavorable 36,000 37,200 1,200 No variance $ 61,120 $ 2,115
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $177,300 budgeted expenses include $119,880 in variable expenses for desks and $21,420 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,200. Fixed Budget Actual Results Variances Desk sales (in units) 148 154 63 71 Chair sales (in units) Desk sales Chair sales Total expenses $ 196,840 36,540 177,300 $ 203,280 42,245 186,520 $ 6,440 F 5,705 F 9,220 U Income $ 56,080 $ 59,005 $ 2,925 F Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed expenses Income BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance Favorable/Unfavorable $ 204,820 $ 203,280 $ 1,540 Favorable 41,180 42,245 1,065 Favorable 148,880 149,320 440 Unfavorable 36,000 37,200 1,200 No variance $ 61,120 $ 2,115
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter23: Flexible Budgeting (flexbud)
Section: Chapter Questions
Problem 4R
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