Question
In: Accounting
Solitaire Company’s fixed budget performance report for June follows. The $318,750 budgeted expenses include $255,000 variable...
Solitaire Company’s fixed budget performance report for June
follows. The $318,750 budgeted expenses include $255,000 variable
expenses and $63,750 fixed expenses. Actual expenses include
$71,450 fixed expenses.
| Fixed Budget | Actual Results | Variances | ||||||||
| Sales (in units) | 8,500 | 10,900 | ||||||||
| Sales (in dollars) | $ | 425,000 | $ | 545,000 | $ | 120,000 | F | |||
| Total expenses | 318,750 | 381,500 | 62,750 | U | ||||||
| Income from operations | $ | 106,250 | $ | 163,500 | $ | 57,250 | F | |||
Prepare a flexible budget performance report showing any variances
between budgeted and actual results. List fixed and variable
expenses separately.
Solutions
Expert Solution
Solution:
| Solitaire Company | ||||
| Flexible Budget Performance Report | ||||
| For the month June 30 | ||||
| Particulars | Flexible Budget (10900) | Actual results (10900) | variances | fav./Unf. |
| Sales | $5,45,000 | $5,45,000 | $0 | None |
| Variable Expense | $3,27,000 | $3,10,050 | $16,950 | F |
| Contribution margin | $2,18,000 | $2,34,950 | $16,950 | F |
| Fixed Expense | $63,750 | $71,450 | $7,700 | U |
| Income from Operations | $1,54,250 | $1,63,500 | $9,250 | F |
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