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 marginExplanation / 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
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