Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $170,450 budgeted expenses include $120,870 in variable expenses for desks and $14,580 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,100. Desk sales (in units) Fixed Budget 153 Actual Results Variances 159 54 62 Chair sales (in units) Desk sales Chair sales Total expenses $ 203,490 32,400 170,450 $ 209,880 38,130 178,870 $ 6,390 F 5,730 F 8,420 U Income Required: $ 65,440 $ 69,140 $ 3,700 F 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. For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed expenses Income Answer is complete but not entirely correct. BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Actual Favorable or Variance Budget Results Unfavorable $ 203,490 $ 209,880 $ 6,390 Favorable 32,400 × 38,130 5,730 Favorable 135,450 142,770 7,320 × Unfavorable 100,440 × 105,240 4,800 × Favorable 35,000 36,100 1,100 Unfavorable 65,440 x $ 69,140 $ 3,700 Favorable
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $170,450 budgeted expenses include $120,870 in variable expenses for desks and $14,580 in variable expenses for chairs, as well as $35,000 of fixed expenses. Actual fixed expenses total $36,100. Desk sales (in units) Fixed Budget 153 Actual Results Variances 159 54 62 Chair sales (in units) Desk sales Chair sales Total expenses $ 203,490 32,400 170,450 $ 209,880 38,130 178,870 $ 6,390 F 5,730 F 8,420 U Income Required: $ 65,440 $ 69,140 $ 3,700 F 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. For Quarter Ended June 30 Desk sales Chair sales Variable expenses Contribution margin Fixed expenses Income Answer is complete but not entirely correct. BUSINESS SOLUTIONS Flexible Budget Performance Report Flexible Actual Favorable or Variance Budget Results Unfavorable $ 203,490 $ 209,880 $ 6,390 Favorable 32,400 × 38,130 5,730 Favorable 135,450 142,770 7,320 × Unfavorable 100,440 × 105,240 4,800 × Favorable 35,000 36,100 1,100 Unfavorable 65,440 x $ 69,140 $ 3,700 Favorable
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 $170,450
budgeted expenses include $120,870 in variable expenses for desks and $14,580 in variable expenses for chairs, as well as $35,000
of fixed expenses. Actual fixed expenses total $36,100.
Desk sales (in units)
Fixed Budget
153
Actual
Results
Variances
159
54
62
Chair sales (in units)
Desk sales
Chair sales
Total expenses
$ 203,490
32,400
170,450
$ 209,880
38,130
178,870
$ 6,390 F
5,730 F
8,420 U
Income
Required:
$ 65,440
$ 69,140
$ 3,700 F
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.
For Quarter Ended June 30
Desk sales
Chair sales
Variable expenses
Contribution margin
Fixed expenses
Income
Answer is complete but not entirely correct.
BUSINESS SOLUTIONS
Flexible Budget Performance Report
Flexible
Actual
Favorable or
Variance
Budget
Results
Unfavorable
$
203,490 $
209,880
$
6,390
Favorable
32,400 ×
38,130
5,730
Favorable
135,450
142,770
7,320 ×
Unfavorable
100,440 ×
105,240
4,800 ×
Favorable
35,000
36,100
1,100
Unfavorable
65,440 x $
69,140
$
3,700
Favorable
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