Bay City Company’s fixed budget performance report for July follows. The $513,00

Question

Bay City Company’s fixed budget performance report for July follows. The $513,000 budgeted expenses include $350,000 variable expenses and $163,000 fixed expenses. Actual expenses include $153,000 fixed expenses. Fixed Budget Actual Results Variances Sales (in units) 7,000 5,900 Sales (in dollars) $ 560,000 $ 519,200 $ 40,800 U Total expenses 513,000 474,000 39,000 F Income from operations $ 47,000 $ 45,200 $ 1,800 U Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.

Explanation / Answer

1 => Budegeted selling price per unit => 560000 /7000 => 80 so flexible budgeted sales => 5900 *80 => $472000

2 => budgeted variable expenses per unit => 350000 / 7000 =>50 so flexible variable expenses => 5900 *50 => $295000

3 => Total Actual variable Expenses => 474000 - 153000 => $321000

FLEXIBLE BUDGET ACTUAL BUDGET VARIANCES FAVOURABLE/UNFAVOURABLE SALES 4720001 519200 47200 FAVOURABLE VARIABLE EXPENSES 2950002 3210003 26000 UNFAVOURABLE CONTRIBUTION MARGIN 177000 198200 21200 FAVOURABLE FIXED EXPENSES 163000 153000 10000 FAVOURABLE INCOME FROM OPERATIONS 14000 45200 31200 FAVOURABLE

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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