Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $160,120 budgeted expenses include $107,920 in variable expenses for desks and $16,200 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,800. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Fixed expenses Income 142 54 Actual Results $ 186,020 29,160 160, 120 148 62 $ 6,380 F 5,250 F 9,130 U $ 55,060 $ 57,560 $ 2,500 F Variances $ 192,400 34,410 169,250 Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance 37,800 Favorable/Unfavorable

Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
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Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $160,120
budgeted expenses include $107,920 in variable expenses for desks and $16,200 in variable expenses for chairs, as well as $36,000
of fixed expenses. Actual fixed expenses total $37,800.
Desk sales (in units)
Chair sales (in units)
Desk sales
Chair sales
Total expenses
Income
For Quarter Ended June 30
Desk sales
Chair sales
Variable expenses
Contribution margin
Fixed
Budget
Fixed expenses
Income
142
54
$ 186,020
29,160
160, 120
Actual
Results
148
62
$ 192,400
34,410
169,250
$ 55,060 $ 57,560
Variances
Required:
Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect
of each variance by selecting favorable, unfavorable, or no variance.)
$ 6,380 F
5,250 F
9,130 U
$ 2,500 F
BUSINESS SOLUTIONS
Flexible Budget Performance Report
Flexible Budget Actual Results Variance
37,800
Favorable/Unfavorable
Transcribed Image Text:Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $160,120 budgeted expenses include $107,920 in variable expenses for desks and $16,200 in variable expenses for chairs, as well as $36,000 of fixed expenses. Actual fixed expenses total $37,800. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Fixed expenses Income 142 54 $ 186,020 29,160 160, 120 Actual Results 148 62 $ 192,400 34,410 169,250 $ 55,060 $ 57,560 Variances Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) $ 6,380 F 5,250 F 9,130 U $ 2,500 F BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance 37,800 Favorable/Unfavorable
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