Exercise 8-3 Preparing a flexible budget performance report LO P1 Solitaire Comp

Question

Exercise 8-3 Preparing a flexible budget performance report LO P1

Solitaire Company’s fixed budget performance report for June follows. The $330,000 budgeted expenses include $264,000 variable expenses and $66,000 fixed expenses. Actual expenses include $75,000 fixed expenses.

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

8-3 Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Hart Company made 4,600 bookshelves using 31,000 board feet of wood costing $359,600. The company's direct materials standards for one bookshelf are 7 board feet of wood at $11.50 per board foot.

Exercise 8-13 Computation and interpretation of materials variances LO P2

(1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price

Fixed Budget Actual Results Variances Sales (in units) 8,800 11,200 Sales (in dollars) $ 440,000 $ 560,000 $ 120,000 F Total expenses 330,000 392,000 62,000 U Income from operations $ 110,000 $ 168,000 $ 58,000 F

Explanation / Answer

Please post independent questions separately. Thank you.

Solitaire Company Flexible Budget Performance Report For the Month Ending June Fixed Budget Activity Variance Flexible Budget Spending Variance Actual Results Sales (units) 8800 11200 11200 Sales $ 440000 120000 F 560000 0 None 560000 Variable expenses 264000 72000 U 336000 19000 F 317000 Fixed expenses 66000 0 None 66000 9000 U 75000 Income from operations 110000 48000 F 158000 10000 F 168000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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