Bay City Company's fixed budget performance report for July follows. The $594,000 budgeted total expenses include $450,000 variable expenses and $144,000 fixed expenses. Actual expenses include $134,000 fixed expenses. Sales (in units) Sales (in dollars) Total expenses Income from operations Sales Variable expenses Contribution margin Fixed expenses Income from operations Fixed Budget 8,100 $648,000 594,000 $ 54,000 S Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) Actual Results 7,000 Flexible budget $ 630,000 558,000 $ 72,000 S Variances Answer is complete but not entirely correct. BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Actual results 560,000 S 630,000 S 388,889 422,000 X 171,111 208,000 * 144,000 134,000 27,111 74,000 S $ 18,000 U 36,000 F $18,000 U Variances 70,000 33,111 36,889 10,000 46,889 Fav./Unf. Favorable Unfavorable Favorable Favorable Favorable
Bay City Company's fixed budget performance report for July follows. The $594,000 budgeted total expenses include $450,000 variable expenses and $144,000 fixed expenses. Actual expenses include $134,000 fixed expenses. Sales (in units) Sales (in dollars) Total expenses Income from operations Sales Variable expenses Contribution margin Fixed expenses Income from operations Fixed Budget 8,100 $648,000 594,000 $ 54,000 S Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations. Round your final answers to whole dollars.) Actual Results 7,000 Flexible budget $ 630,000 558,000 $ 72,000 S Variances Answer is complete but not entirely correct. BAY CITY COMPANY Flexible Budget Performance Report For Month Ended July 31 Actual results 560,000 S 630,000 S 388,889 422,000 X 171,111 208,000 * 144,000 134,000 27,111 74,000 S $ 18,000 U 36,000 F $18,000 U Variances 70,000 33,111 36,889 10,000 46,889 Fav./Unf. Favorable Unfavorable Favorable Favorable Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
am. 75.
Transcribed Image Text:Bay City Company's fixed budget performance report for July follows. The $594,000 budgeted total
expenses include $450,000 variable expenses and $144,000 fixed expenses. Actual expenses include
$134,000 fixed expenses.
Sales (in units)
Sales (in dollars)
Total expenses
Income from operations
Sales
Variable expenses
Contribution margin
Fixed expenses
Income from operations
Fixed Budget
8,100
$648,000
594,000
$ 54,000
Prepare a flexible budget performance report that shows any variances between budgeted results and
actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by
selecting for favorable, unfavorable, and no variance. Do not round your intermediate calculations.
Round your final answers to whole dollars.)
$
$
Answer is complete but not entirely correct.
BAY CITY COMPANY
Flexible Budget Performance Report
For Month Ended July 31
Actual
Variances
results
$630,000 $ 70,000
33,111
36,889
10,000
46,889
Flexible
budget
Actual
Results
7,000
$ 630,000
558,000
$ 72,000
560,000
388,889
171,111
144,000
27,111
$
Variances
422,000 X
208,000 >
134,000
$ 18,000 U
36,000 F
$18,000 U
74,000 $
Fav./Unf.
Favorable
Unfavorable
Favorable
Favorable
Favorable
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