Beech Company produced and sold 113,000 units of its product in May. For the lev

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Beech Company produced and sold 113,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,200,000; variable costs, $654,000; and fixed costs, $320,000. The following actual financial results are available for May.

6. Beech Company produced and sold 113,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,200,000; variable costs, $654,000; and fixed costs, $320,000. The following actual financial results are available for May. Actual 612,500 Sales (113,000 units) 1,183,000 Variable costs Fixed costs 320,000 Prepare a flexible budget performance report for May. BEECH COMPANY Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Variance Favorable/ Unfavorable Contribution margin 0 0

Explanation / Answer

SOLUTION BEECH COMPANY FLEXIBLE BUDGET PERFORMANCE REPORT FOR MONTH ENDED MAY 31 FLEXIBLE ACTUAL VARIANCES F/U SALE 1200000 1183000 17000 U LESS- VARIABLE COST 654000 612500 41500 F CONRTIBUTION MARGIN 546000 570500 -24500 U LESS-FIXED COST 32000 32000 0 N PROFIT 514000 538500 -24500 F

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