Chapter 8, Problem 8SP

(This serial problem began in Chapter 1 and continues through most of the book if previous chapter segment were not completed the serial problem can begin at this point. It is helpful but not necessary to use the working papers that accompany the book.)

Business Solutions’s second quarter 2016 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for chairs, as well as $30,000 fixed expenses. The actual expenses include $31,000 fixed expenses. Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.