E23-16 preparing a flexible budget report Cole Pro Company managers receive the

Question

E23-16 preparing a flexible budget report Cole Pro Company managers receive the following incomplete performance report:
iPad 12:52 PM 93% D chrome for Mobil × ' D chrome for Mobil × ' D Chrome for Mobil ×Course Material f × Grano, D C httpsviewer.gcu.edu/PMHO9W 150 % 386 of 778 arning Objective 1 E23-16 Preparing a flexible budget performance report Cole Pro Company managers received the following incomplete performance report: COLE PRO COMPANY Flexible Budget Performance Report For the Year Ended July 31, 2016 Flexible Sales Actual Bdge Flexible Volume Static Results Variance Budget Variance Budget 39,000 8,000 F (g) Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 39,000 (a) $ 214,000 b) 214,000 19,000 F (h) 86,000 (c) 80,000 8,000 U 128,000 (d)134,000 11,000 F 0 108,000 (e) 103,000 0 $ 20,000 ( $ 31,000 $ 11,000 F Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning. arning Objective1 E23-17 Preparing a flexible budget performance report

Explanation / Answer

Actual Flexible Flexible Sales vol Static Results budget V Budget Variance budget units 39,000 0(a) 39,000 8,000(F) 31,000(g) Sales revenue $214,000 0(b) $214,000 $19,000(F) 195,000 (h) Variable expenses 86,000 6,000(U) 80,000 8,000(U) 72,000(i) contribution margin 128,000 6,000(U) 134,000 11,000(F) 123,000 (j) Fixed expenses 108,000 5,000(U) 103,000 0 103,000 (k) Operating income 20,000 11,000(U) 31,000 11,000(F) 20,000 (j) Employees group responsible for sales will be appreciated since the actual sales is more than budgeted on the other hand employees group responsible for expenses will be crticised as the actual expenses are more than budgeted

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