Flexible Budgets and Standard Cost Systems 1317> Problems Group BP23-30B Preparing a flexible budget performance reportLearning Objective 1Cell Plus Technologies manufactures capacitors for cellular base stations and othercommunication applications. The company's July 2018 flexible budget shows outputlevels of 8,500, 10,000, and 12,000 units. The static budget was based on expectedsales of 10,000 units.3. Static Bud, Var, for Op. Inc.$22,900 FCELL ONE TECHNOLOGIESFlexible BudgetFor the Month Ended July 31, 2018BudgetAmountsper UnitUnits8,50010,00012,000Sales Revenue$ 24$ 204,000 $ 240,000 $ 288,000Variable Expenses13110,500130,000156,000Contribution Margin93,500110,000132,000Fixed Expenses57,00057,00057,000Operating Income$ 36,500 $ 53,000 $ 75,000The company sold 12,000 units during July, and its actual operating income was asfollows:CELL ONE TECHNOLOGIESIncome StatementFor the Month Ended July 31, 2018Sales Revenue$ 295,000Variable Expenses161,100Contributions Margin133,900Fixed Expenses58,000Operating Income$ 75,900CHAPTER 23 The company sold 12,000 units during July, and its actual operating income was asfollows:CELL ONE TECHNOLOGIESIncome StatementFor the Month Ended July 31, 2018Sales Revenue$ 295,000Variable Expenses161,100Contributions Margin133,900Fixed Expenses58,000Operating Income$ 75,900Requirements1. Prepare a flexible budget performance report for July 2018.2. What was the effect on Cell Plus's operating income of selling 2,000 units morethan the static budget level of sales?3. What is Cell Plus's static budget variance for operating income?4. Explain why the flexible budget performance report provides more usefulinformation to Cell Plus's managers than the simple static budget variance. Whatinsights can Cell Plus's managers draw from this performance report?

A budget is a pecuniary plan for a particular upcoming period of time. A budget is prepared and…

nologies manufactures capacitors for cellular base stations an -n applications. The company's July 2018 flexible budget sho , 10,000, and 12,000 units. The static budget was based on e D units. CELL ONE TECHNOLOGIES Flexible Budget For the Month Ended July 31, 2018 Budget Amounts per Unit ts 8,500 10,000 12,000 es Revenue $ 24 204,000 $ 240,000 $ 288,000 iable Expenses 13 110,500 130,000 156,000

nologies manufactures capacitors for cellular base stations an -n applications. The company's July 2018 flexible budget sho , 10,000, and 12,000 units. The static budget was based on e D units. CELL ONE TECHNOLOGIES Flexible Budget For the Month Ended July 31, 2018 Budget Amounts per Unit ts 8,500 10,000 12,000 es Revenue $ 24 204,000 $ 240,000 $ 288,000 iable Expenses 13 110,500 130,000 156,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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