Solitaire Company\'s fixed budget performance report for June follows. The $307,

Question

Solitaire Company's fixed budget performance report for June follows. The $307,500 budgeted expenses include $270,600 variable expenses and $36,900 fixed expenses Actual expenses include $44,100 fixed expenses Actual Fixed Budget Results Variances 8,200 Sales (in units) Sales (in dollars) Total expenses Income from operations $410,000 307,500 $102,500 10,600 $530,000 371,000 $159,000 $120,000 F 63,500U 56,500 F Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately Answer is not complete SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget $ 530,000 Actual Results Variances Fav./Unf No variance Sales Variable expenses Contribution margin Fixed expenses Income from operations 371000 4,100 Favorable $44,100Favorable $159,000 644,100 Unfavorable $ 36,900

Explanation / Answer

Explanation:

Budgeted selling price = Total fixed budget sales / Total fixed budget units  

= $410,000 / 8,200

= $50 per unit

Flexible budget sales = $50 × 10,600 = $530,000

Budgeted Variable expenses = Total fixed budget variable expenses / Total units budgeted

= $270,600 / 8,200 = $33

Flexible budget Variable expenses = $33 × 10,600 = $349,800

Total actual variable expenses = Total actual expenses - Actual fixed expenses

= $371,000 - $44,100 = $326,900

SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual Results Variances Fav./Unf. Sales $530,000 $530,000 No variance Variable expenses $349,800 $326,900 $22,900 Favorable Contribution margin $180,200 $203,100 $22,900 Favorable Fixed expenses $36,900 $44,100 $7,200 Unfavorable Income from operations $143,300 $159,000 $15,700 Favorable

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