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Exercise 21-3 Preparation of a flexible budget performance report LO P1 taire Co

ID: 2539456 • Letter: E

Question

Exercise 21-3 Preparation of a flexible budget performance report LO P1 taire Company's fxed budget performance report for June follows. The $675,000 budgeted expenses Fixed Budget Actual Results Variances include $738,000 variable expenses and $63,000 fixed expenses. Actual expenses include $75,000 fixed expenses 11,400 900,000 $1,140,000 $240,000 F $225,000 342,000 $117,000 F Sales (in units) 9,000 Sales (in dollars) Total expenses 675,000 798,000 123,000U Income from operations 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 Favorable/ Unfavorable Flexible Budget Actual Results Variances Contribution margin

Explanation / Answer

Particulars

Flexible Budget

Actual Results

Variances

Favourable/Unfavourable

Sales

1140000

1140000

0

No Variance

(11400*100)

Variable Costs

775200

723000

52200

Favourable

(675000-63000)*1140000/900000

Contribution

364800

417000

-52200

Favourable

Fixed Cost

63000

75000

-12000

Unfavourable

Income from Operations

301800

342000

-40200

Favourable

Particulars

Flexible Budget

Actual Results

Variances

Favourable/Unfavourable

Sales

1140000

1140000

0

No Variance

(11400*100)

Variable Costs

775200

723000

52200

Favourable

(675000-63000)*1140000/900000

Contribution

364800

417000

-52200

Favourable

Fixed Cost

63000

75000

-12000

Unfavourable

Income from Operations

301800

342000

-40200

Favourable