i Data Table Data Table Phone Technologies Flexible Budget Phone Technologies For the Month Ended July 31 , 2018 Budget Amount Income Statement For the Month Ended July 31, 2018 per Unit Sales Revenue $ 260,000 7,500 9,000 11,000 Units 148,000 Variable Expenses 23 $ 172,500 $ 207,000 $ 253,000 Sales Revenue Contribution Margin 112,000 Variable Expenses 13 97,500 117,000 143,000 55,000 75,000 90,000 110,000 Fixed Expenses Contribution Margin $ 57,000 54,000 54,000 54,000 Fixed Expenses Operating Income 21,000 $ 36,000 S 56,000 Operating Income Print Done Print Done
i Data Table Data Table Phone Technologies Flexible Budget Phone Technologies For the Month Ended July 31 , 2018 Budget Amount Income Statement For the Month Ended July 31, 2018 per Unit Sales Revenue $ 260,000 7,500 9,000 11,000 Units 148,000 Variable Expenses 23 $ 172,500 $ 207,000 $ 253,000 Sales Revenue Contribution Margin 112,000 Variable Expenses 13 97,500 117,000 143,000 55,000 75,000 90,000 110,000 Fixed Expenses Contribution Margin $ 57,000 54,000 54,000 54,000 Fixed Expenses Operating Income 21,000 $ 36,000 S 56,000 Operating Income Print Done Print Done
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
Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,500, 9,000, and 11,000 units . The static budget was based on expected sales of 9,000 units. The company sold 11,000 units during July. Its flexible budget and actual operating income was as follows:
Requirement 1. Prepare a flexible budget performance report for July (Enter a "0” for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank )
Transcribed Image Text:Data Table
Data Table
Phone Technologies
Flexible Budget
Phone Technologies
For the Month Ended July 31, 2018
Budget
Amount
Income Statement
For the Month Ended July 31, 2018
per Unit
Sales Revenue
$ 260,000
7,500
9,000
11,000
Units
148,000
2.
23 $ 172,500 $ 207,000 $ 253,000
Variable Expenses
Sales Revenue
Contribution Margin
112,000
Variable Expenses
13
97,500
117,000
143,000
55,000
75,000
90,000
110,000
Fixed Expenses
Contribution Margin
2$
57,000
54,000
54,000
54,000
Fixed Expenses
Operating Income
36,000 S
56,000
2$
21,000 $
Operating Income
Print
Done
Print
Done
Transcribed Image Text:Phone Technologies
Flexible Budget Performance Report
For the Month Ended July 31, 2018
1
3
4
5
(1) - (3)
(3) - (5)
Budget
Flexible
Sales
Amounts
Actual
Budget
Flexible
Volume
Static
Per Unit
Results
Variance
Budget
Variance
Budget
Units
Sales Revenue
Variable Expenses
Contribution Margin
Fixed Expenses
Operating Income
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