Solitaire Company’s fixed budget performance report for June follows. The $645,0

Question

Solitaire Company’s fixed budget performance report for June follows. The $645,000 budgeted expenses include $606,300 variable expenses and $38,700 fixed expenses. Actual expenses include $50,700 fixed expenses.

Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately. (Do not round intermediate calculations.)

Solitaire Company’s fixed budget performance report for June follows. The $645,000 budgeted expenses include $606,300 variable expenses and $38,700 fixed expenses. Actual expenses include $50,700 fixed expenses.

Explanation / Answer

Fixed Budget Flexible Budget Actual Results Variance Sales ( in units) 8600 11000 11000 Sales ( in dollars) 860000 1100000 1100000 0 Variable Expense 606300 775500 723300 52200 favourable Fixed Expense 38700 38700 50700 -12000 unfavourable Total Expense 645000 814200 774000 40200 favourable Income from operations 215000 285800 326000 -40200 favourable Notes For flexible budget : Sales ( in dollars ) = 860000/8600*11000 = 1100000 Variable expense = 606300/8600*11000 = 775500

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