Chapter 23, Problem E23.16E

Preparing a flexible budget performance report Learning Objective 1

Murphy Company managers received the following incomplete performance report;

MURPHY COMPANY Flexible Budget Performance Report For the Year Ended July 31,2018

	Actual Results	Flexible Budget Variance	Flexible Budget	Sales Volume Variance	Static Budget
Units	35,000	(a)	35,000	5,000 F	(g)
Sales Revenue	$ 219,000	(b)	$ 219,000	$ 27,000 F	(h)
Variable Expenses	85,000	(c)	84,000	13,000 U	(i)
Contribution Margin	134,000	(d)	135,000	14,000 F	(j)
Fixed Expenses	105,000	(e)	100,000	0	(k)
Operating Income	$ 29,000	(f)	$ 35,000	$ 14,000 F	(l)

Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning.