Question

Baird Company has provided the following 2018 data: Budget Sales $ 517,000 Variable product costs 186,000 Variable selling expense 48,000 Other variable expenses 2,700 Fixed product costs 15,800 Fixed selling expense 24,300 Other fixed expenses 2,000 Interest expense 620 Variances Sales 8,300 U Variable product costs 4,100 F Variable selling expense 2,100 U Other variable expenses 1,200 U Fixed product costs 300 F Fixed selling expense 440 F Other fixed expenses 170 U Interest expense 150 F Required a. & b. Prepare a budgeted and actual income statement for internal use. Separate operating income from net income in the statements. Calculate variances and identify them as favorable (F) or unfavorable (U) by comparing the budgeted and actual amounts determined. (Select "None" if there is no effect (i.e., zero variance).)

	BAIRD COMPANY Internal Income Statement for 2018 Budget Actual Variance Sales Variable expenses: Product costs Selling expenses Other expenses Contribution margin Fixed expenses: Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss)

Answer 1