Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $162,770 budgeted expenses include $111,650 in variable expenses for desks and $15,120 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 expenses Income Fixed Budget 145 56 $ Actual Results 188,500 $ 194,790 31,920 162,770 151 64 Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. $ 6,290 F 5,520 F 9,030 U $ 57,650 $ 60,430 $ 2,780 F 36,480 133,550 99,230 37,440 171,880 Variances BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance 196,300 $ 194,790 $ $ 37,440 134,000 98,230 36,000 63.230 $ 37,800 60,430 $ 1,510 960 450 1,000 1,800 2,800 ******** Favorable or Unfavorable Unfavorable Favorable Unfavorable Unfavorable Unfavorable Unfavorable
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $162,770 budgeted expenses include $111,650 in variable expenses for desks and $15,120 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 expenses Income Fixed Budget 145 56 $ Actual Results 188,500 $ 194,790 31,920 162,770 151 64 Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. $ 6,290 F 5,520 F 9,030 U $ 57,650 $ 60,430 $ 2,780 F 36,480 133,550 99,230 37,440 171,880 Variances BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Budget Actual Results Variance 196,300 $ 194,790 $ $ 37,440 134,000 98,230 36,000 63.230 $ 37,800 60,430 $ 1,510 960 450 1,000 1,800 2,800 ******** Favorable or Unfavorable Unfavorable Favorable Unfavorable Unfavorable Unfavorable Unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $162,770
budgeted expenses include $111,650 in variable expenses for desks and $15,120 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 expenses
Income
Fixed
Budget
145
56
$
Actual
Results
151
64
Required:
Prepare a flexible budget performance report that shows variances between budgeted results and actual results.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Variances
188,500 $ 194,790
$ 6,290 F
5,520 F
31,920
37,440
162,770
171,800
9,030 U
$ 57,650 $ 60,430 $2,780 F
BUSINESS SOLUTIONS
Flexible Budget Performance Report
Flexible Budget Actual Results Variance
194,790 $
37.440
$
196,300 $
36,480
133,550
134,000
99,230
98,230
36,000
37,800
63.230 $
60.430 $
Favorable or Unfavorable
1,510
Unfavorable
Favorable
960
450 Unfavorable
1,000 Unfavorable
1,800
Unfavorable
2,800
Unfavorable
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