Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $170.470budgeted expenses include $120,080 in variable expenses for desks and $15.390 in variable expenses for chairs, as well as $35,000of fixed expenses. Actual fixed expenses total $36,500Desk sales (in units)Chair sales (in units)Desk sales.Chair salesTotal expensesIncomeFor Quarter Ended June 30Desk salesChair salesVariable expensesContribution marginFixed Budget15257Fixed expensesIncome$ 194,56031,920170,470ActualResults15865$ 200,66037,375179,160$ 56,010 $ 58,875VariancesRequired:Prepare a flexible budget performance report that shows variances between budgeted results and actual results, (Indicate the effectof each variance by selecting favorable, unfavorable, or no variance.)$ 6,100 F5,455 F8,690 U$ 2,065BUSINESS SOLUTIONSFlexible Budget Performance ReportFlexible Budget Actual Results Variance+Favorable/Unfavorable

The contribution margin is calculated as the difference between the sales and variable costs. The…

Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $170.470 budgeted expenses include $120,080 in variable expenses for desks and $15.390 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,500 Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income Actual Fixed Budget Results 152 57 158 65 $ 194,560 31,920 170,470 $ 56,010 $ 58,875 $ 200,660 37,375 179,160 Variances $ 6,100 F 5,455 F 8,690 U $ 2,865 Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results, (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BUSINESS DEUTIONE

Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $170.470 budgeted expenses include $120,080 in variable expenses for desks and $15.390 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,500 Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income Actual Fixed Budget Results 152 57 158 65 $ 194,560 31,920 170,470 $ 56,010 $ 58,875 $ 200,660 37,375 179,160 Variances $ 6,100 F 5,455 F 8,690 U $ 2,865 Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results, (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BUSINESS DEUTIONE

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

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Question

Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $170.470
budgeted expenses include $120,080 in variable expenses for desks and $15.390 in variable expenses for chairs, as well as $35,000
of fixed expenses. Actual fixed expenses total $36,500
Desk sales (in units)
Chair sales (in units)
Desk sales.
Chair sales
Total expenses
Income
For Quarter Ended June 30
Desk sales
Chair sales
Variable expenses
Contribution margin
Fixed Budget
152
57
Fixed expenses
Income
$ 194,560
31,920
170,470
Actual
Results
158
65
$ 200,660
37,375
179,160
$ 56,010 $ 58,875
Variances
Required:
Prepare a flexible budget performance report that shows variances between budgeted results and actual results, (Indicate the effect
of each variance by selecting favorable, unfavorable, or no variance.)
$ 6,100 F
5,455 F
8,690 U
$ 2,065
BUSINESS SOLUTIONS
Flexible Budget Performance Report
Flexible Budget Actual Results Variance
+
Favorable/Unfavorable

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