A retail department store used the following cost-volumerelationship were used i

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A retail department store used the following cost-volumerelationship were used in developing a flexible budget for thecompany for the currnet year:                                                                    yearly fixed expenses      variableexpenses per sales dollar cost of merchandisesold.............................                                              $0.600 selling and promotionexpense....................     $210,000                            0.082 building occupancyexpense.......................       186,000                             0.022 buyingexpense..........................................        150,000                           0.040 deliveryexpense........................................         111,000                           0.010 credit andcollection.................................            72,000                           0.002 administrativeexpense..................................      531,000                          0.003    totals......................................................      $1,260,000                       $0.759 management expected to attain a sales level of $12 millionduring the current year. At the end of the year, the actualresults achieved by the company were: net sales..............................................$10,500,00 cost of goodssold...............................    6,180,000 seliing and promoting expenses............   1,020,000 building occupancyexpenses...............       420,000 buyingexpenses.................................       594,000 deliveryexpense.................................        183,000 credit and collectionexpense...............          90,000 administrativeexpense........................       564,000 **prepare a schedule comaoring the actual results withflexible budget amounts developed for the actual sales volume of$10,500,000. Organize your schedule as a partial multiplestep income statement, ending with operating income. Includeseperate columns for (1) flexible budget amounts, (2) actualamounts, and (3) any amount over/under budget. use the costvolume relationships given in the problem to compute the flexiblebudget amounts. A retail department store used the following cost-volumerelationship were used in developing a flexible budget for thecompany for the currnet year:                                                                    yearly fixed expenses      variableexpenses per sales dollar cost of merchandisesold.............................                                              $0.600 selling and promotionexpense....................     $210,000                            0.082 building occupancyexpense.......................       186,000                             0.022 buyingexpense..........................................        150,000                           0.040 deliveryexpense........................................         111,000                           0.010 credit andcollection.................................            72,000                           0.002 administrativeexpense..................................      531,000                          0.003    totals......................................................      $1,260,000                       $0.759 management expected to attain a sales level of $12 millionduring the current year. At the end of the year, the actualresults achieved by the company were: net sales..............................................$10,500,00 cost of goodssold...............................    6,180,000 seliing and promoting expenses............   1,020,000 building occupancyexpenses...............       420,000 buyingexpenses.................................       594,000 deliveryexpense.................................        183,000 credit and collectionexpense...............          90,000 administrativeexpense........................       564,000 **prepare a schedule comaoring the actual results withflexible budget amounts developed for the actual sales volume of$10,500,000. Organize your schedule as a partial multiplestep income statement, ending with operating income. Includeseperate columns for (1) flexible budget amounts, (2) actualamounts, and (3) any amount over/under budget. use the costvolume relationships given in the problem to compute the flexiblebudget amounts.

Explanation / Answer

x.Xgn="center">Comparison of Budgeted and Actual Revenue and Expenses

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