Solitaire Company\'s fixed budget performance report for June follows. The $622,

Question

Solitaire Company's fixed budget performance report for June follows. The $622,500 budgeted expenses include $713,800 variable expenses and $91,300 fixed expenses. Actual expenses include $103,300 fixed expenses Fixed Budget Actual Results Variances Sales (in units) 8,300 10,700 Sales (in dollars) Total expenses $830,000 $1,070,000 $240,000 F 749,000126,500 U 622,500 Income from operations $207,500 321,000 $113,500 F Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual ResultsVariances Favorable/ Unfavorable Contribution margin

Explanation / Answer

Working:

Flexible budget:

Sales = $830000 x 10700/8300 =$1070000

Variable expenses = $713800 x 10700/8300 = $920200

Actual results:

Variable expenses = Total expenses - Fixed expenses = $749000 - $103300 = $645700

SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual Results Variances Favorable/
Unfavorable Sales 1070000 1070000 0 Variable expenses 920200 645700 274500 Favorable Contribution margin 149800 424300 274500 Favorable Fixed expenses 91300 103300 12000 Unfavorable Net income 58500 321000 262500 Favorable

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