Serial Problem Business Solutions LO P1 Business Solutions’s second quarter 2016

Question

Serial Problem Business Solutions LO P1

Business Solutions’s second quarter 2016 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. List fixed and variable expenses separately.

   

  

Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.

Business Solutions’s second quarter 2016 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. List fixed and variable expenses separately.

Explanation / Answer

Answer

Working

Flexible Budget

Desk sales = 180000/144 *150 = 187500

Chair sales = 36000/72*80 = $ 40000

Variable Expenses = (108000/144 * 150 + 18000/72*80) = 132500

Fixed Expenses = 30000

Total Expenses = 162500

Flexible Budget Actual Results Variances   Desk sales (in units) 150       150         Chair sales (in units) 80       80         Desk sales 187500 186000 1500 U   Chair sales 40000 41200 1200 F Variable Expenses 132500 132880 380 U Fixed Expenses 30000 31000 1000 U   Total expenses 162500 163880 1380 U   Income from operations 65000 63320 1680 U

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.