Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642932
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 23, Problem E23.16E
Preparing a flexible budget performance report Learning Objective 1
Murphy Company managers received the following incomplete performance report;
MURPHY COMPANY Flexible Budget Performance Report For the Year Ended July 31,2018 |
|||||
Actual Results | Flexible |
Flexible Budget | Sales Volume Variance | Static Budget | |
Units | 35,000 | (a) |
35,000 | 5,000 F | (g) |
Sales Revenue | $ 219,000 | (b) |
$ 219,000 | $ 27,000 F | (h) |
Variable Expenses | 85,000 | (c) |
84,000 | 13,000 U | (i) |
Contribution Margin | 134,000 | (d) |
135,000 | 14,000 F | (j) |
Fixed Expenses | 105,000 | (e) |
100,000 | 0 | (k) |
Operating Income | $ 29,000 | (f) |
$ 35,000 | $ 14,000 F | (l) |
Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning.
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Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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