Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $165,74 budgeted expenses include $114,000 in variable expenses for desks and $20,740 in variable expenses for chairs, as well as $31,000 of fixed expenses. Actual fixed expenses total $32,200. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income Fixed Budget 152 61 Actual Results 158 69 $ 197,600 31,110 165,740 $ 203,820 36,225 174,470 $ 62,970 $ 65,575 Variances $ 6,220 F 5,115 F 8,730 U $ 2,605 F Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results.
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $165,74 budgeted expenses include $114,000 in variable expenses for desks and $20,740 in variable expenses for chairs, as well as $31,000 of fixed expenses. Actual fixed expenses total $32,200. Desk sales (in units) Chair sales (in units) Desk sales Chair sales Total expenses Income Fixed Budget 152 61 Actual Results 158 69 $ 197,600 31,110 165,740 $ 203,820 36,225 174,470 $ 62,970 $ 65,575 Variances $ 6,220 F 5,115 F 8,730 U $ 2,605 F Required: Prepare a flexible budget performance report that shows variances between budgeted results and actual results.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:SP 23 Serial Problem Business Solutions (Algo) LO P1
Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture operations follows. The $165,740
budgeted expenses include $114,000 in variable expenses for desks and $20,740 in variable expenses for chairs, as well as $31,000
of fixed expenses. Actual fixed expenses total $32,200.
Desk sales (in units)
Chair sales (in units)
Desk sales
Chair sales
Total expenses
Income
Fixed Budget
152
Actual
Results
61
Variances
158
69
$ 197,600
$ 203,820
$ 6,220 F
5,115 F
31,110
36, 225
174,470
165,740
8,730 U
$ 62,970 $ 65,575 $ 2,605 F
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.
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