Chapter 23, Problem 4E

Exercise 23-4

Preparing a flexible budget performance report

P1

Bay City Company’s fixed budget performance report for July follows. The $647,500 budgeted total expenses include $487,00 variable expenses and $160,000 fixed expenses. Actual expenses include $158,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.