Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $169,450 budgeted expenses include $114,210 in variable expenses for desks and $16,240 in variable expenses for chairs, as well as $39,000 fixed expenses. The actual expenses include $40,900 fixed expenses. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income from operations Fixed Budget Actual Results Variances 141 147 58 66 $187,530 34,800 169,450 $ 52,880 $194,040 40,590 178,820 $ 55,810 $6,510 F 5,790 F 9,370 U $2,930 F Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.
Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $169,450 budgeted expenses include $114,210 in variable expenses for desks and $16,240 in variable expenses for chairs, as well as $39,000 fixed expenses. The actual expenses include $40,900 fixed expenses. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income from operations Fixed Budget Actual Results Variances 141 147 58 66 $187,530 34,800 169,450 $ 52,880 $194,040 40,590 178,820 $ 55,810 $6,510 F 5,790 F 9,370 U $2,930 F Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
Gadubhai
Transcribed Image Text:Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $169,450
budgeted expenses include $114,210 in variable expenses for desks and $16,240 in variable expenses for chairs, as well as $39,000
fixed expenses. The actual expenses include $40,900 fixed expenses. List fixed and variable expenses separately.
Desk sales (in units)
Chair sales (in units)
Desk sales
Chair sales
Total expenses
Income from operations
Desk sales
Chair sales
Variable expenses
Fixed expenses
Fixed Budget Actual Results
141
58
147
66
Income from operations
$187,530
34,800
169,450
$ 52,880
$194,040
40,590
178,820
$ 55,810
Prepare a flexible budget performance report that shows any variances between budgeted results and actual results.
Variances
BUSINESS SOLUTIONS
Flexible Budget Performance Report
For Quarter Ended June 30
Flexible Budget Actual Results
195,510
$
39,600
$6,510 F
5,790 F
9,370 U
$2,930 F
Variance
Fav./Unf.
Unfavorable
Favorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
4
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education