Solitaire Company\'s fixed budget performance report for June follows. The $315,

Question

Solitaire Company's fixed budget performance report for June follows. The $315,000 budgeted expenses 1-3 f a flexible include $294,000 variable expenses and $21,000 fixed expenses. Actual expenses include $27,000 fixed mance expenses. Prepare flexible budget performance report showing any variances between budgeted and ac- tual results. List fixed and variable expenses separately Fixed Budget Actual Results Variances Sales (in units) 8,400 $420,000 315,000 10,800 Sales (in dollars) Total expenses $540,000$120,000F 63,000 U $57,000 F 378,000 ance, $105,000-2,000

Explanation / Answer

SOLITAIRE COMPANY FLEXIBLE BUDGET For the month ended june Particulars Flexible Budget Actual Results Variances Favourable/Unfavourable Sales 540000 540000 N Less: Variable expenses 378000 351000 27000 F Contribution margin 162000 189000 27000 F Less: Fixed expenses 21000 27000 6000 U Income from operations 141000 162000 21000 F *calculation Flexible budget include total expenses as variable because we can change the budget but can't change the Actual results. Sales Flexible budget (fixed sales + Variance) 540000 Actual results 540000 Variable expenses Flexible budget (315000 + 63000) 378000 Actual results (378000 - 27000) 351000 Fixed expense Flexible budget (given) 21000 Actual results (given) 27000

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