The following data were collected by Bemidji Co. for the month of June: Static budget data: Sales Variable costs Total fixed costs Actual results: Sales Variable costs Total fixed costs 11,000 units @ 38/unit $ 27.00 per unit $23,100 12,000 units @ $37/unit $ 28.80 per unit $22,100 Required: 1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
The following data were collected by Bemidji Co. for the month of June: Static budget data: Sales Variable costs Total fixed costs Actual results: Sales Variable costs Total fixed costs 11,000 units @ 38/unit $ 27.00 per unit $23,100 12,000 units @ $37/unit $ 28.80 per unit $22,100 Required: 1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:The following data were collected by Bemidji Co. for the month of June:
Static budget data:
Sales
Variable costs
Total fixed costs
Actual results:
Sales
Variable costs
Total fixed costs
11,000 units @ 38/unit
$ 27.00 per unit
$23,100
Sales (units)
Revenue
Variable expenses
Contribution margin
Fixed expenses
Income
12,000 units @ $37/unit
$28.80 per unit
$22,100
Required:
1, 2 & 3. Prepare the static and flexible budgets and show the variances by completing the table given below. (Indicate the effect of
each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
Actual
BEMIDJI COMPANY
Static Budget Performance Report
For the Month Ended June 30
Flexible
Budget
Flexible Budget Variance
Sales Volume Variance
Static Budget
Static Variance
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