Please dont give answers in an image format thank you Exercise 21-6 (Static) Preparing flexible budget performance report LO P1Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Fixed BudgetedActual ResultsSales (units produced and sold)1,200 1,400Sales (in dollars)$ 300per unit$ 435,000Variable costs$ 120per unit$ 172,000Fixed costs$ 125,000 $ 122,000 For Month Ended May 31SalesVariable costsContribution marginFixed costsIncomeLEWIS COMPANYFlexible Budget Performance ReportFlexible Budget Actual Results(1,400 units) (1,400 units)$1,200,000VariancesFavorable/UnfavorableFavorableUnfavorableFavorableFavorableFavorable

Budgeting means estimates or forecasts made for future period. Flexible budget is that type and form…

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 1PB

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Please dont give answers in an image format thank you

Exercise 21-6 (Static) Preparing flexible budget performance report LO P1

Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)

	Fixed Budgeted	Actual Results
Sales (units produced and sold)	1,200		1,400
Sales (in dollars)	$ 300	per unit	$ 435,000
Variable costs	$ 120	per unit	$ 172,000
Fixed costs	$ 125,000		$ 122,000

For Month Ended May 31
Sales
Variable costs
Contribution margin
Fixed costs
Income
LEWIS COMPANY
Flexible Budget Performance Report
Flexible Budget Actual Results
(1,400 units) (1,400 units)
$
1,200,000
Variances
Favorable/Unfavorable
Favorable
Unfavorable
Favorable
Favorable
Favorable

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