Exercise 21-3 Preparing a flexible budget performance report LO P1 Solitaire Com

Question

Exercise 21-3 Preparing a flexible budget performance report LO P1 Solitaire Company's fixed budget performance report for June follows. The $322,500 budgeted expenses include $275,200 variable expenses and $47,300 fixed expenses. Actual expenses include $55,100 fixed expenses Actual Fixed Budget Variances Results Sales (in units) Sales (in dollars) Total expenses Income from operations 8,600 $430,000 322,500 $107,500 11,000 $550,000 385,000 $165,000 $120,000F 62,500 U $ 57,500 F Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately. SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual ResultsVariances Fav./Unf les riable expenses Contribution margin xed expenses Income from operation s |?

Explanation / Answer

SOLITAIRE COMPANY FLEXIBLE BUDGET PERFORMANCE REPORT For month ended June 30 Particulars Flexible budget Actual Results Variances Fav./Unf. Sales 430000 550000 120000 Favourable Less: Variable Expenses 275200 329900 54700 Unfavourable Contribution margin 154800 220100 65300 Favourable Less:Fixed expenses 47300 55100 7800 Unfavourable Income from operations 107500 165000 57500 Favourable Working: Calculation of actual variable expense Actual variable expense=385000-55100=$329900

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