Question Help * The following table contains a hypothetical partial master budge

Question

Question Help * The following table contains a hypothetical partial master budget performance report for Organic Fudge Company. (Click the icon to view the partial master budget report.) Fill in the missing amounts. Be sure to indicate whether variances are favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "O". A variance of zero is considered favorable.) Organic Fudge Company Flexible Budget Performance Report: Sales and Operating Expenses For Year Ended December 31 Flexible Budget Flexible Budget Volume Variance Master Budget 12,500 Actual Sales volume (number of cases sold) 12,500 11,700 Sales revenue ($32 per case) Less vanable expenses: $ 393,500 400,000 374,400 Sales expense ($4 per case sold) Shipping expense ($1 per case sold) $47,100 10,100 336,300 $ 50,000 12,500 337,500 46,800 11,700 315,900 Contribution margin Less fixed expenses: 10,300 1,200 $ 324,800 8,900 1,200 327.400 8,900 1,200 305,800 Salaries Office rent Operating income

Explanation / Answer

Answers

--When Budgeted revenues are more than actual
--When Budgeted expenses are less than actual

--When Budgeted revenues are less than actual
--When Budgeted expenses are more than actual

Actual

Flexible Budget

Flexible Budget

Volume variance

Master Budget

Sales Volume

12500

12500

11700

Sales Revenue

$    3,93,500.00

$              6,500.00 U

$       4,00,000.00

$         25,600.00 F

$     3,74,400.00

Less: Variable expenses

$                           -  

Sales Expenses

$        47,100.00

$              2,900.00 F

$           50,000.00

$            3,200.00   U

$        46,800.00

Shipping expenses

$        10,100.00

$              2,400.00 F

$           12,500.00

$               800.00   U

$        11,700.00

Contribution margin

$    3,36,300.00

$              1,200.00 U

$       3,37,500.00

$         21,600.00   F

$     3,15,900.00

Less: Fixed expenses

$                           -  

$                         -  

Salaries

$        10,300.00

$           1,400.00 U

$             8,900.00

$                         -     F

$           8,900.00

Office Rent

$          1,200.00

$                           -     F

$             1,200.00

$                         -     F

$           1,200.00

Operating Income

$    3,24,800.00

$              2,600.00 U

$       3,27,400.00

$         21,600.00   F

$     3,05,800.00

Actual

Flexible Budget

Flexible Budget

Volume variance

Master Budget

Sales Volume

12500

12500

11700

Sales Revenue

$    3,93,500.00

$              6,500.00 U

$       4,00,000.00

$         25,600.00 F

$     3,74,400.00

Less: Variable expenses

$                           -  

Sales Expenses

$        47,100.00

$              2,900.00 F

$           50,000.00

$            3,200.00   U

$        46,800.00

Shipping expenses

$        10,100.00

$              2,400.00 F

$           12,500.00

$               800.00   U

$        11,700.00

Contribution margin

$    3,36,300.00

$              1,200.00 U

$       3,37,500.00

$         21,600.00   F

$     3,15,900.00

Less: Fixed expenses

$                           -  

$                         -  

Salaries

$        10,300.00

$           1,400.00 U

$             8,900.00

$                         -     F

$           8,900.00

Office Rent

$          1,200.00

$                           -     F

$             1,200.00

$                         -     F

$           1,200.00

Operating Income

$    3,24,800.00

$              2,600.00 U

$       3,27,400.00

$         21,600.00   F

$     3,05,800.00

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