r 8 Homework Solitaire Company\'s fxed budget performance report for June follow
ID: 2516633 • Letter: R
Question
r 8 Homework Solitaire Company's fxed budget performance report for June follows. The $326.250 budgeted expenses include $269,700 variable expenses and $56,550 fixed expenses. Actual expenses include $64,850 fxed expenses Sales fin Sales (in 435,000 55,000$120.80or $301,7505166,59957,750 Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable es expenses separately Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual Results Variances Fav Unt Prev 2 of 4l! Next MacBook Air 3 5 6 7 9Explanation / Answer
*Variable expenses of 269700 are on 8700 units & we have to calculate on 11100 units.
Variable exp.(269700 / 8700 * 11100) = 344100
Ans. SOLITAIRE COMPANY Flexible Budget Performances Report For Month Ended June 30 Particulars Flexible Budget Actual Results Variances Fav./Unf. Sales 555000 555000 0 no effect Less: Variable expenses 344100 323650 20450 F Contribution margin 210900 231350 20450 F Less: Fixed expenses 56550 64850 8300 U Income From Operations 154350 166500 12150 F *Variance = Flexible budget - Actual results *Increase in sales , contribution & income = Favourable *Decrease in sales , contribution & income = Unfavourable *Increase in Variable exp. & Fixed exp. = Unfavourable *Decrease in Variable exp. & Fixed exp. = Favourable *Calculations: Flexible budget: *Flexible budget is made on actual unit sales (11100) Sales = Sales units * selling price 11100 * 50 555000 *Selling price = 435000 / 8700 50*Variable expenses of 269700 are on 8700 units & we have to calculate on 11100 units.
Variable exp.(269700 / 8700 * 11100) = 344100
Actual results: *Variable expenses = Total expenses - Fixed expenses 388500 - 64850 323650Related Questions
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