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may someoneo help me resolvo this problema. thank you Exercise 8-3 Preparation o

ID: 2470006 • Letter: M

Question

may someoneo help me resolvo this problema. thank you

Exercise 8-3 Preparation of a flexible budget performance report LO P1

Solitaire Company’s fixed budget performance report for June follows. The $315,000 budgeted expenses include $285,600 variable expenses and $29,400 fixed expenses. Actual expenses include $37,100 fixed expenses.

Fixed Budget Actual Results Variances Sales (in units) 8,400 10,800 Sales (in dollars) $ 420,000 $ 540,000 $ 120,000 F Total expenses 315,000 378,000 92,400 U Income from operations $ 134,400 $ 162,000 $ 27,600 F

Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately.

Explanation / Answer

Flexible budget performance report is prepared as under:

Solitaire Company Flexible Budget performance Report For the Month ended June Flexible Budget Actual Variance Sales 540000 5,40,000 0 None Variable expenses 367200 3,40,900 26,300 F Contribution margin 1,72,800 1,99,100 -26,300 F Fixed expenses 29,400 37,100 -7,700 U Income from operations 1,43,400 1,62,000 -18,600 F