The Sales Department manager has control over all revenues and costs, except for the depreciation. Prepare a flexible performance budget report for the Sales Department for the year. Angelic Company produces bottles of expense women's perfume. The followingbudgeted and actual amounts are for 2022 for the Sales Department, which is aprofit center. The company prepared a budget assuming that $10,000 bottles wouldbe sold but 11,225 bottles were actually sold.Note: that the manager does have discretion over the actual selling price of eachbottle of perfume.ItemSales RevenueBottles of perfume (variable)Sales staff (variable)Budgeted(at 10,000)$2,000,0001,200,000400,000Insurance (fixed)Supplies (variable)30,000Store depreciation (fixed, non-controllable) 212,00015,500Actual$2,245,0001,347,000449,00015,50033,675212,000

A flexible budget is a financial plan that adjusts or flexes with changes in activity levels or…

be sold but 11,225 bottles were actually sold. Note: that the manager does have discretion over the actual selling price of each bottle of perfume. Item Sales Revenue Bottles of perfume (variable) Sales staff (variable) Insurance (fixed) Supplies (variable) Budgeted (at 10,000) $2,000,000 1,200,000 400,000 15,500 30,000 Store depreciation (fived non-controllable) 212.000 Actual $2,245,000 1,347,000 449,000 15,500 33,675 212.000

be sold but 11,225 bottles were actually sold. Note: that the manager does have discretion over the actual selling price of each bottle of perfume. Item Sales Revenue Bottles of perfume (variable) Sales staff (variable) Insurance (fixed) Supplies (variable) Budgeted (at 10,000) $2,000,000 1,200,000 400,000 15,500 30,000 Store depreciation (fived non-controllable) 212.000 Actual $2,245,000 1,347,000 449,000 15,500 33,675 212.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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