The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. me company's actual sales were 26,000 units at $480,000. Actual variable costs were $112,000 and actual fixed costs were $145,000. epare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each ariance by selecting favorable, unfavorable, or no variance.)
The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. me company's actual sales were 26,000 units at $480,000. Actual variable costs were $112,000 and actual fixed costs were $145,000. epare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each ariance by selecting favorable, unfavorable, or no variance.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The fixed budget for 20,000 units of production shows sales of $400,000; variable costs of $80,000; and fixed costs of
$150,000.
The company's actual sales were 26,000 units at $480,000. Actual variable costs were $112,000 and actual fixed costs were $145,000.
Prepare a flexible budget performance report. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each
variance by selecting favorable, unfavorable, or no variance.)
Contribution margin
Flexible Budget Performance Report
Flexible Budget Actual Results
$
0
0$
Variances
Favorable/
Unfavorable
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